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Zoom Video Communications (ZM) Stock Moves -0.09%: What You Should Know

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In the latest trading session, Zoom Video Communications (ZM - Free Report) closed at $321.28, marking a -0.09% move from the previous day. This move was narrower than the S&P 500's daily loss of 0.21%.

Heading into today, shares of the video-conferencing company had lost 4.42% over the past month, lagging the Computer and Technology sector's loss of 1.96% and the S&P 500's gain of 0.59% in that time.

Wall Street will be looking for positivity from ZM as it approaches its next earnings report date. This is expected to be June 1, 2021. On that day, ZM is projected to report earnings of $0.97 per share, which would represent year-over-year growth of 385%. Meanwhile, our latest consensus estimate is calling for revenue of $905.24 million, up 175.84% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.67 per share and revenue of $3.8 billion. These totals would mark changes of +9.88% and +43.28%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for ZM. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.33% higher within the past month. ZM currently has a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that ZM has a Forward P/E ratio of 87.71 right now. This represents a premium compared to its industry's average Forward P/E of 69.13.

Meanwhile, ZM's PEG ratio is currently 6.05. 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. ZM's industry had an average PEG ratio of 3.2 as of yesterday's close.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 183, putting it in the bottom 28% 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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