VMware closed at $123.58 in the latest trading session, marking a -1.21% move from the prior day. This change lagged the S&P 500's daily loss of 0.38%. At the same time, the Dow lost 0.5%, and the tech-heavy Nasdaq lost 0.05%.
Heading into today, shares of the cloud computing company had lost 0.07% over the past month, outpacing the Computer and Technology sector's loss of 8.71% and the S&P 500's loss of 6.25% in that time.
VMware will be looking to display strength as it nears its next earnings release, which is expected to be February 24, 2022. In that report, analysts expect VMware to post earnings of $1.97 per share. This would mark a year-over-year decline of 10.86%. Meanwhile, our latest consensus estimate is calling for revenue of $3.52 billion, up 6.92% from the prior-year quarter.
It is also important to note the recent changes to analyst estimates for VMware. These recent revisions tend to reflect the evolving nature of short-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. 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. Within the past 30 days, our consensus EPS projection remained stagnant. VMware is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, VMware is currently trading at a Forward P/E ratio of 17.11. This represents a discount compared to its industry's average Forward P/E of 32.01.
We can also see that VMW currently has a PEG ratio of 1.35. 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 Computer - Software was holding an average PEG ratio of 2.65 at yesterday's closing price.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 183, which puts it in the bottom 29% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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VMware (VMW) Dips More Than Broader Markets: What You Should Know
VMware closed at $123.58 in the latest trading session, marking a -1.21% move from the prior day. This change lagged the S&P 500's daily loss of 0.38%. At the same time, the Dow lost 0.5%, and the tech-heavy Nasdaq lost 0.05%.
Heading into today, shares of the cloud computing company had lost 0.07% over the past month, outpacing the Computer and Technology sector's loss of 8.71% and the S&P 500's loss of 6.25% in that time.
VMware will be looking to display strength as it nears its next earnings release, which is expected to be February 24, 2022. In that report, analysts expect VMware to post earnings of $1.97 per share. This would mark a year-over-year decline of 10.86%. Meanwhile, our latest consensus estimate is calling for revenue of $3.52 billion, up 6.92% from the prior-year quarter.
It is also important to note the recent changes to analyst estimates for VMware. These recent revisions tend to reflect the evolving nature of short-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. 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. Within the past 30 days, our consensus EPS projection remained stagnant. VMware is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, VMware is currently trading at a Forward P/E ratio of 17.11. This represents a discount compared to its industry's average Forward P/E of 32.01.
We can also see that VMW currently has a PEG ratio of 1.35. 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 Computer - Software was holding an average PEG ratio of 2.65 at yesterday's closing price.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 183, which puts it in the bottom 29% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.