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Zoom Video Communications (ZM) Outpaces Stock Market Gains: What You Should Know
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Zoom Video Communications (ZM - Free Report) closed the most recent trading day at $67.65, moving +1.49% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.75%. Elsewhere, the Dow gained 0.4%, while the tech-heavy Nasdaq added 10.36%.
Heading into today, shares of the video-conferencing company had lost 6.73% over the past month, outpacing the Computer and Technology sector's loss of 8.72% and lagging the S&P 500's loss of 5.98% in that time.
Investors will be hoping for strength from Zoom Video Communications as it approaches its next earnings release. In that report, analysts expect Zoom Video Communications to post earnings of $0.80 per share. This would mark a year-over-year decline of 37.98%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.1 billion, up 2.67% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.06 per share and revenue of $4.38 billion. These totals would mark changes of -19.92% and +6.71%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Zoom Video Communications. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 has moved 3.08% lower. Zoom Video Communications currently has a Zacks Rank of #4 (Sell).
Digging into valuation, Zoom Video Communications currently has a Forward P/E ratio of 16.41. For comparison, its industry has an average Forward P/E of 41.8, which means Zoom Video Communications is trading at a discount to the group.
It is also worth noting that ZM currently has a PEG ratio of 0.84. 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. Internet - Software stocks are, on average, holding a PEG ratio of 1.8 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 64, which puts it in the top 26% 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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Zoom Video Communications (ZM) Outpaces Stock Market Gains: What You Should Know
Zoom Video Communications (ZM - Free Report) closed the most recent trading day at $67.65, moving +1.49% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.75%. Elsewhere, the Dow gained 0.4%, while the tech-heavy Nasdaq added 10.36%.
Heading into today, shares of the video-conferencing company had lost 6.73% over the past month, outpacing the Computer and Technology sector's loss of 8.72% and lagging the S&P 500's loss of 5.98% in that time.
Investors will be hoping for strength from Zoom Video Communications as it approaches its next earnings release. In that report, analysts expect Zoom Video Communications to post earnings of $0.80 per share. This would mark a year-over-year decline of 37.98%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.1 billion, up 2.67% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.06 per share and revenue of $4.38 billion. These totals would mark changes of -19.92% and +6.71%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Zoom Video Communications. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 has moved 3.08% lower. Zoom Video Communications currently has a Zacks Rank of #4 (Sell).
Digging into valuation, Zoom Video Communications currently has a Forward P/E ratio of 16.41. For comparison, its industry has an average Forward P/E of 41.8, which means Zoom Video Communications is trading at a discount to the group.
It is also worth noting that ZM currently has a PEG ratio of 0.84. 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. Internet - Software stocks are, on average, holding a PEG ratio of 1.8 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 64, which puts it in the top 26% 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.