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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 $141.44 in the latest trading session, marking a -1.85% move from the prior day. This change lagged the S&P 500's daily loss of 0.37%.
Coming into today, shares of the video-conferencing company had lost 16.03% in the past month. In that same time, the Computer and Technology sector lost 8.73%, while the S&P 500 lost 6.01%.
Wall Street will be looking for positivity from Zoom Video Communications as it approaches its next earnings report date. This is expected to be February 28, 2022. In that report, analysts expect Zoom Video Communications to post earnings of $1.07 per share. This would mark a year-over-year decline of 12.3%. Our most recent consensus estimate is calling for quarterly revenue 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. 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. 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, 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 remained stagnant. Zoom Video Communications is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Zoom Video Communications has a Forward P/E ratio of 33.08 right now. This represents a discount compared to its industry's average Forward P/E of 49.52.
Also, we should mention that ZM has a PEG ratio of 1.7. 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 3.15 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 156, putting it in the bottom 39% 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) Dips More Than Broader Markets: What You Should Know
Zoom Video Communications (ZM - Free Report) closed at $141.44 in the latest trading session, marking a -1.85% move from the prior day. This change lagged the S&P 500's daily loss of 0.37%.
Coming into today, shares of the video-conferencing company had lost 16.03% in the past month. In that same time, the Computer and Technology sector lost 8.73%, while the S&P 500 lost 6.01%.
Wall Street will be looking for positivity from Zoom Video Communications as it approaches its next earnings report date. This is expected to be February 28, 2022. In that report, analysts expect Zoom Video Communications to post earnings of $1.07 per share. This would mark a year-over-year decline of 12.3%. Our most recent consensus estimate is calling for quarterly revenue 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. 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. 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, 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 remained stagnant. Zoom Video Communications is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Zoom Video Communications has a Forward P/E ratio of 33.08 right now. This represents a discount compared to its industry's average Forward P/E of 49.52.
Also, we should mention that ZM has a PEG ratio of 1.7. 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 3.15 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 156, putting it in the bottom 39% 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.