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Zoom Video Communications (ZM) Stock Sinks As Market Gains: What You Should Know
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In the latest trading session, Zoom Video Communications (ZM - Free Report) closed at $69.49, marking a -0.6% move from the previous day. This move lagged the S&P 500's daily gain of 0.4%. Elsewhere, the Dow gained 0.33%, while the tech-heavy Nasdaq lost 1.1%.
Heading into today, shares of the video-conferencing company had lost 0.41% over the past month, outpacing the Computer and Technology sector's loss of 0.9% and lagging the S&P 500's loss of 0.01% in that time.
Zoom Video Communications will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.79, down 38.76% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.1 billion, up 2.67% from the prior-year quarter.
ZM's full-year Zacks Consensus Estimates are calling for earnings of $4.05 per share and revenue of $4.38 billion. These results would represent year-over-year changes of -20.12% and +6.71%, respectively.
Investors might also notice 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Over the past month, the Zacks Consensus EPS estimate has moved 5.61% lower. Zoom Video Communications currently has a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that Zoom Video Communications has a Forward P/E ratio of 17.26 right now. This represents a discount compared to its industry's average Forward P/E of 41.4.
We can also see that ZM currently 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 2.11 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 35, putting it in the top 14% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Zoom Video Communications (ZM - Free Report) closed at $69.49, marking a -0.6% move from the previous day. This move lagged the S&P 500's daily gain of 0.4%. Elsewhere, the Dow gained 0.33%, while the tech-heavy Nasdaq lost 1.1%.
Heading into today, shares of the video-conferencing company had lost 0.41% over the past month, outpacing the Computer and Technology sector's loss of 0.9% and lagging the S&P 500's loss of 0.01% in that time.
Zoom Video Communications will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.79, down 38.76% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.1 billion, up 2.67% from the prior-year quarter.
ZM's full-year Zacks Consensus Estimates are calling for earnings of $4.05 per share and revenue of $4.38 billion. These results would represent year-over-year changes of -20.12% and +6.71%, respectively.
Investors might also notice 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Over the past month, the Zacks Consensus EPS estimate has moved 5.61% lower. Zoom Video Communications currently has a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that Zoom Video Communications has a Forward P/E ratio of 17.26 right now. This represents a discount compared to its industry's average Forward P/E of 41.4.
We can also see that ZM currently 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 2.11 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 35, putting it in the top 14% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.