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Zoom Video Communications (ZM) Outpaces Stock Market Gains: What You Should Know
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In the latest trading session, Zoom Video Communications (ZM - Free Report) closed at $70.86, marking a +1.11% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.7%. Elsewhere, the Dow gained 0.56%, while the tech-heavy Nasdaq added 7.5%.
Heading into today, shares of the video-conferencing company had lost 4.9% over the past month, lagging the Computer and Technology sector's loss of 2.78% and the S&P 500's loss of 0.94% in that time.
Investors will be hoping for strength from Zoom Video Communications as it approaches its next earnings release. The company is expected to report EPS of $0.79, down 38.76% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue 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 $4.05 per share and revenue of $4.38 billion. These totals would mark changes of -20.12% and +6.71%, respectively, from last year.
Any recent changes to analyst estimates for Zoom Video Communications should also be noted by investors. 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. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 5.61% lower. Zoom Video Communications is currently sporting a Zacks Rank of #4 (Sell).
Looking at its valuation, Zoom Video Communications is holding a Forward P/E ratio of 17.3. This represents a discount compared to its industry's average Forward P/E of 40.59.
Also, we should mention that ZM has a PEG ratio of 0.89. 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 2.04 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 50, putting it in the top 20% 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.
To follow ZM in the coming trading sessions, be sure to utilize Zacks.com.
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Zoom Video Communications (ZM) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Zoom Video Communications (ZM - Free Report) closed at $70.86, marking a +1.11% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.7%. Elsewhere, the Dow gained 0.56%, while the tech-heavy Nasdaq added 7.5%.
Heading into today, shares of the video-conferencing company had lost 4.9% over the past month, lagging the Computer and Technology sector's loss of 2.78% and the S&P 500's loss of 0.94% in that time.
Investors will be hoping for strength from Zoom Video Communications as it approaches its next earnings release. The company is expected to report EPS of $0.79, down 38.76% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue 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 $4.05 per share and revenue of $4.38 billion. These totals would mark changes of -20.12% and +6.71%, respectively, from last year.
Any recent changes to analyst estimates for Zoom Video Communications should also be noted by investors. 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. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 5.61% lower. Zoom Video Communications is currently sporting a Zacks Rank of #4 (Sell).
Looking at its valuation, Zoom Video Communications is holding a Forward P/E ratio of 17.3. This represents a discount compared to its industry's average Forward P/E of 40.59.
Also, we should mention that ZM has a PEG ratio of 0.89. 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 2.04 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 50, putting it in the top 20% 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.
To follow ZM in the coming trading sessions, be sure to utilize Zacks.com.