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Zoom Video Communications (ZM) Gains As Market Dips: What You Should Know
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Zoom Video Communications (ZM - Free Report) closed the most recent trading day at $77.90, moving +1.86% from the previous trading session. This change outpaced the S&P 500's 0.03% loss on the day. Meanwhile, the Dow lost 0.46%, and the Nasdaq, a tech-heavy index, added 3.16%.
Prior to today's trading, shares of the video-conferencing company had gained 10.06% over the past month. This has outpaced the Computer and Technology sector's gain of 8.43% and the S&P 500's gain of 3.6% in that time.
Zoom Video Communications will be looking to display strength as it nears its next earnings release, which is expected to be February 27, 2023. On that day, Zoom Video Communications is projected to report earnings of $0.79 per share, which would represent a year-over-year decline of 38.76%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.1 billion, up 2.67% from the year-ago period.
Any recent changes to analyst estimates for Zoom Video Communications should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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 7.66% higher. Zoom Video Communications is currently sporting a Zacks Rank of #2 (Buy).
In terms of valuation, Zoom Video Communications is currently trading at a Forward P/E ratio of 20.93. This represents a discount compared to its industry's average Forward P/E of 43.18.
It is also worth noting that ZM currently has a PEG ratio of 1.07. 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. Internet - Software stocks are, on average, holding a PEG ratio of 1.83 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 74, which puts it in the top 30% 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.
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Zoom Video Communications (ZM) Gains As Market Dips: What You Should Know
Zoom Video Communications (ZM - Free Report) closed the most recent trading day at $77.90, moving +1.86% from the previous trading session. This change outpaced the S&P 500's 0.03% loss on the day. Meanwhile, the Dow lost 0.46%, and the Nasdaq, a tech-heavy index, added 3.16%.
Prior to today's trading, shares of the video-conferencing company had gained 10.06% over the past month. This has outpaced the Computer and Technology sector's gain of 8.43% and the S&P 500's gain of 3.6% in that time.
Zoom Video Communications will be looking to display strength as it nears its next earnings release, which is expected to be February 27, 2023. On that day, Zoom Video Communications is projected to report earnings of $0.79 per share, which would represent a year-over-year decline of 38.76%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.1 billion, up 2.67% from the year-ago period.
Any recent changes to analyst estimates for Zoom Video Communications should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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 7.66% higher. Zoom Video Communications is currently sporting a Zacks Rank of #2 (Buy).
In terms of valuation, Zoom Video Communications is currently trading at a Forward P/E ratio of 20.93. This represents a discount compared to its industry's average Forward P/E of 43.18.
It is also worth noting that ZM currently has a PEG ratio of 1.07. 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. Internet - Software stocks are, on average, holding a PEG ratio of 1.83 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 74, which puts it in the top 30% 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.