Back to top

Image: Bigstock

Zoom Video Communications (ZM) Stock Moves -0.03%: What You Should Know

Read MoreHide Full Article

Zoom Video Communications (ZM - Free Report) closed the most recent trading day at $77.52, moving -0.03% from the previous trading session. This change was narrower than the S&P 500's daily loss of 0.2%. Elsewhere, the Dow lost 0.14%, while the tech-heavy Nasdaq lost 0.12%.

Coming into today, shares of the video-conferencing company had lost 3.1% in the past month. In that same time, the Computer and Technology sector lost 4.64%, while the S&P 500 lost 3.29%.

Investors will be hoping for strength from Zoom Video Communications as it approaches its next earnings release. On that day, Zoom Video Communications is projected to report earnings of $0.84 per share, which would represent a year-over-year decline of 24.32%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.1 billion, up 4.43% from the year-ago period.

ZM's full-year Zacks Consensus Estimates are calling for earnings of $3.71 per share and revenue of $4.39 billion. These results would represent year-over-year changes of -26.82% and +7.04%, respectively.

Any recent changes to analyst estimates for Zoom Video Communications should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 has moved 0.29% lower. Zoom Video Communications is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, Zoom Video Communications is holding a Forward P/E ratio of 20.89. Its industry sports an average Forward P/E of 46.76, so we one might conclude that Zoom Video Communications is trading at a discount comparatively.

Meanwhile, ZM's PEG ratio is currently 1.07. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Internet - Software stocks are, on average, holding a PEG ratio of 2.32 based on yesterday's closing prices.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 96, putting it in the top 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.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Zoom Video Communications, Inc. (ZM) - free report >>

Published in