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Zoom Video Communications (ZM) Stock Sinks As Market Gains: What You Should Know
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In the latest trading session, Zoom Video Communications (ZM - Free Report) closed at $427.55, marking a -0.63% move from the previous day. This move lagged the S&P 500's daily gain of 1.62%. Meanwhile, the Dow gained 1.54%, and the Nasdaq, a tech-heavy index, added 1.31%.
Coming into today, shares of the video-conferencing company had lost 16.9% in the past month. In that same time, the Computer and Technology sector gained 2.55%, while the S&P 500 gained 3.4%.
Investors will be hoping for strength from ZM as it approaches its next earnings release, which is expected to be November 30, 2020. The company is expected to report EPS of $0.75, up 733.33% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $694.51 million, up 316.9% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.49 per share and revenue of $2.40 billion. These totals would mark changes of +611.43% and +285.82%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for ZM. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. ZM is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that ZM has a Forward P/E ratio of 172.87 right now. This represents a premium compared to its industry's average Forward P/E of 67.51.
We can also see that ZM currently has a PEG ratio of 6.91. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Software was holding an average PEG ratio of 6.23 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 192, which puts it in the bottom 25% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow ZM in the coming trading sessions, be sure to utilize Zacks.com.
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Zoom Video Communications (ZM) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Zoom Video Communications (ZM - Free Report) closed at $427.55, marking a -0.63% move from the previous day. This move lagged the S&P 500's daily gain of 1.62%. Meanwhile, the Dow gained 1.54%, and the Nasdaq, a tech-heavy index, added 1.31%.
Coming into today, shares of the video-conferencing company had lost 16.9% in the past month. In that same time, the Computer and Technology sector gained 2.55%, while the S&P 500 gained 3.4%.
Investors will be hoping for strength from ZM as it approaches its next earnings release, which is expected to be November 30, 2020. The company is expected to report EPS of $0.75, up 733.33% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $694.51 million, up 316.9% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.49 per share and revenue of $2.40 billion. These totals would mark changes of +611.43% and +285.82%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for ZM. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. ZM is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that ZM has a Forward P/E ratio of 172.87 right now. This represents a premium compared to its industry's average Forward P/E of 67.51.
We can also see that ZM currently has a PEG ratio of 6.91. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Software was holding an average PEG ratio of 6.23 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 192, which puts it in the bottom 25% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow ZM in the coming trading sessions, be sure to utilize Zacks.com.