We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Zoom Video Communications (ZM) Gains As Market Dips: What You Should Know
Read MoreHide Full Article
Zoom Video Communications (ZM - Free Report) closed the most recent trading day at $73.39, moving +1.27% from the previous trading session. This change outpaced the S&P 500's 0.16% loss on the day. At the same time, the Dow lost 0.26%, and the tech-heavy Nasdaq gained 1.58%.
Coming into today, shares of the video-conferencing company had gained 4.38% in the past month. In that same time, the Computer and Technology sector gained 0.99%, while the S&P 500 gained 0.84%.
Investors will be hoping for strength from Zoom Video Communications as it approaches its next earnings release, which is expected to be February 27, 2023. 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.
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. 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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 6.23% higher. Zoom Video Communications is holding a Zacks Rank of #2 (Buy) right now.
In terms of valuation, Zoom Video Communications is currently trading at a Forward P/E ratio of 19.83. This represents a discount compared to its industry's average Forward P/E of 41.57.
It is also worth noting that ZM currently has a PEG ratio of 1.02. 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 industry currently had an average PEG ratio of 1.75 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 72, putting it in the top 29% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
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 $73.39, moving +1.27% from the previous trading session. This change outpaced the S&P 500's 0.16% loss on the day. At the same time, the Dow lost 0.26%, and the tech-heavy Nasdaq gained 1.58%.
Coming into today, shares of the video-conferencing company had gained 4.38% in the past month. In that same time, the Computer and Technology sector gained 0.99%, while the S&P 500 gained 0.84%.
Investors will be hoping for strength from Zoom Video Communications as it approaches its next earnings release, which is expected to be February 27, 2023. 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.
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. 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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 6.23% higher. Zoom Video Communications is holding a Zacks Rank of #2 (Buy) right now.
In terms of valuation, Zoom Video Communications is currently trading at a Forward P/E ratio of 19.83. This represents a discount compared to its industry's average Forward P/E of 41.57.
It is also worth noting that ZM currently has a PEG ratio of 1.02. 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 industry currently had an average PEG ratio of 1.75 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 72, putting it in the top 29% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.