We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Zoom Video Communications (ZM) Outpaces Stock Market Gains: What You Should Know
Read MoreHide Full Article
Zoom Video Communications (ZM - Free Report) closed at $155.68 in the latest trading session, marking a +0.91% move from the prior day. This move outpaced the S&P 500's daily gain of 0.69%. Meanwhile, the Dow gained 0.78%, and the Nasdaq, a tech-heavy index, added 0.28%.
Prior to today's trading, shares of the video-conferencing company had lost 16.27% over the past month. This has lagged the Computer and Technology sector's loss of 8.19% and the S&P 500's loss of 5.29% in that time.
Zoom Video Communications will be looking to display strength as it nears its next earnings release. On that day, Zoom Video Communications is projected to report earnings of $1.09 per share, which would represent a year-over-year decline of 10.66%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.05 billion, up 19.25% from the year-ago period.
Investors might also notice recent changes to analyst estimates for Zoom Video Communications. These revisions help to show the ever-changing nature of near-term business trends. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 remained stagnant within the past month. Zoom Video Communications is currently a Zacks Rank #3 (Hold).
In terms of valuation, Zoom Video Communications is currently trading at a Forward P/E ratio of 31.82. This represents a discount compared to its industry's average Forward P/E of 49.9.
It is also worth noting that ZM currently has a PEG ratio of 1.63. 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 3.05 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 152, which puts it in the bottom 41% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Zoom Video Communications (ZM) Outpaces Stock Market Gains: What You Should Know
Zoom Video Communications (ZM - Free Report) closed at $155.68 in the latest trading session, marking a +0.91% move from the prior day. This move outpaced the S&P 500's daily gain of 0.69%. Meanwhile, the Dow gained 0.78%, and the Nasdaq, a tech-heavy index, added 0.28%.
Prior to today's trading, shares of the video-conferencing company had lost 16.27% over the past month. This has lagged the Computer and Technology sector's loss of 8.19% and the S&P 500's loss of 5.29% in that time.
Zoom Video Communications will be looking to display strength as it nears its next earnings release. On that day, Zoom Video Communications is projected to report earnings of $1.09 per share, which would represent a year-over-year decline of 10.66%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.05 billion, up 19.25% from the year-ago period.
Investors might also notice recent changes to analyst estimates for Zoom Video Communications. These revisions help to show the ever-changing nature of near-term business trends. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 remained stagnant within the past month. Zoom Video Communications is currently a Zacks Rank #3 (Hold).
In terms of valuation, Zoom Video Communications is currently trading at a Forward P/E ratio of 31.82. This represents a discount compared to its industry's average Forward P/E of 49.9.
It is also worth noting that ZM currently has a PEG ratio of 1.63. 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 3.05 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 152, which puts it in the bottom 41% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.