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Zoom Video Communications (ZM) Dips More Than Broader Markets: What You Should Know
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Zoom Video Communications (ZM - Free Report) closed at $324.33 in the latest trading session, marking a -1.7% move from the prior day. This change lagged the S&P 500's daily loss of 0.53%.
Prior to today's trading, shares of the video-conferencing company had gained 4.31% over the past month. This has lagged the Computer and Technology sector's gain of 8.44% and the S&P 500's gain of 5.72% in that time.
Investors will be hoping for strength from ZM as it approaches its next earnings release. On that day, ZM is projected to report earnings of $0.97 per share, which would represent year-over-year growth of 385%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $905.24 million, up 175.84% from the year-ago period.
ZM's full-year Zacks Consensus Estimates are calling for earnings of $3.66 per share and revenue of $3.8 billion. These results would represent year-over-year changes of +9.58% and +43.28%, respectively.
It is also important to note the recent changes to analyst estimates for ZM. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Within the past 30 days, our consensus EPS projection has moved 2.45% higher. ZM is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that ZM has a Forward P/E ratio of 90.11 right now. Its industry sports an average Forward P/E of 78.85, so we one might conclude that ZM is trading at a premium comparatively.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 208, which puts it in the bottom 19% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Zoom Video Communications (ZM) Dips More Than Broader Markets: What You Should Know
Zoom Video Communications (ZM - Free Report) closed at $324.33 in the latest trading session, marking a -1.7% move from the prior day. This change lagged the S&P 500's daily loss of 0.53%.
Prior to today's trading, shares of the video-conferencing company had gained 4.31% over the past month. This has lagged the Computer and Technology sector's gain of 8.44% and the S&P 500's gain of 5.72% in that time.
Investors will be hoping for strength from ZM as it approaches its next earnings release. On that day, ZM is projected to report earnings of $0.97 per share, which would represent year-over-year growth of 385%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $905.24 million, up 175.84% from the year-ago period.
ZM's full-year Zacks Consensus Estimates are calling for earnings of $3.66 per share and revenue of $3.8 billion. These results would represent year-over-year changes of +9.58% and +43.28%, respectively.
It is also important to note the recent changes to analyst estimates for ZM. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Within the past 30 days, our consensus EPS projection has moved 2.45% higher. ZM is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that ZM has a Forward P/E ratio of 90.11 right now. Its industry sports an average Forward P/E of 78.85, so we one might conclude that ZM is trading at a premium comparatively.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 208, which puts it in the bottom 19% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.