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Zoom Video Communications (ZM) Stock Moves -0.16%: What You Should Know
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Zoom Video Communications (ZM - Free Report) closed the most recent trading day at $417.26, moving -0.16% from the previous trading session. This move was narrower than the S&P 500's daily loss of 0.19%. At the same time, the Dow 0%, and the tech-heavy Nasdaq gained 0.07%.
Investors will be hoping for strength from ZM as it approaches its next earnings release, which is expected to be March 1, 2021. In that report, analysts expect ZM to post earnings of $0.78 per share. This would mark year-over-year growth of 420%. Meanwhile, our latest consensus estimate is calling for revenue of $809.07 million, up 329.78% from the prior-year quarter.
Any recent changes to analyst estimates for ZM should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. ZM is currently a Zacks Rank #2 (Buy).
In terms of valuation, ZM is currently trading at a Forward P/E ratio of 141.71. This represents a premium compared to its industry's average Forward P/E of 83.72.
It is also worth noting that ZM currently has a PEG ratio of 5.67. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Software was holding an average PEG ratio of 4.67 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 182, putting it in the bottom 29% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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 Moves -0.16%: What You Should Know
Zoom Video Communications (ZM - Free Report) closed the most recent trading day at $417.26, moving -0.16% from the previous trading session. This move was narrower than the S&P 500's daily loss of 0.19%. At the same time, the Dow 0%, and the tech-heavy Nasdaq gained 0.07%.
Investors will be hoping for strength from ZM as it approaches its next earnings release, which is expected to be March 1, 2021. In that report, analysts expect ZM to post earnings of $0.78 per share. This would mark year-over-year growth of 420%. Meanwhile, our latest consensus estimate is calling for revenue of $809.07 million, up 329.78% from the prior-year quarter.
Any recent changes to analyst estimates for ZM should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. ZM is currently a Zacks Rank #2 (Buy).
In terms of valuation, ZM is currently trading at a Forward P/E ratio of 141.71. This represents a premium compared to its industry's average Forward P/E of 83.72.
It is also worth noting that ZM currently has a PEG ratio of 5.67. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Software was holding an average PEG ratio of 4.67 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 182, putting it in the bottom 29% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.