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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 $69.33, marking a -0.26% move from the previous day. This change lagged the S&P 500's 0.28% gain on the day. Meanwhile, the Dow gained 0.08%, and the Nasdaq, a tech-heavy index, added 5.28%.
Coming into today, shares of the video-conferencing company had gained 4.34% in the past month. In that same time, the Computer and Technology sector gained 2.63%, while the S&P 500 gained 4.86%.
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 $1.05 per share. This would mark no growth from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.11 billion, up 1.25% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.28 per share and revenue of $4.48 billion. These totals would mark changes of -2.06% and +1.88%, respectively, from last year.
Any recent changes to analyst estimates for Zoom Video Communications should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Zoom Video Communications is holding a Zacks Rank of #1 (Strong Buy) right now.
Digging into valuation, Zoom Video Communications currently has a Forward P/E ratio of 16.23. Its industry sports an average Forward P/E of 43.08, so we one might conclude that Zoom Video Communications is trading at a discount comparatively.
We can also see that ZM currently has a PEG ratio of 0.65. 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 1.76 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 63, which puts it in the top 25% 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.
Be sure to follow all of these stock-moving metrics, and many more, on 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 $69.33, marking a -0.26% move from the previous day. This change lagged the S&P 500's 0.28% gain on the day. Meanwhile, the Dow gained 0.08%, and the Nasdaq, a tech-heavy index, added 5.28%.
Coming into today, shares of the video-conferencing company had gained 4.34% in the past month. In that same time, the Computer and Technology sector gained 2.63%, while the S&P 500 gained 4.86%.
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 $1.05 per share. This would mark no growth from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.11 billion, up 1.25% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.28 per share and revenue of $4.48 billion. These totals would mark changes of -2.06% and +1.88%, respectively, from last year.
Any recent changes to analyst estimates for Zoom Video Communications should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Zoom Video Communications is holding a Zacks Rank of #1 (Strong Buy) right now.
Digging into valuation, Zoom Video Communications currently has a Forward P/E ratio of 16.23. Its industry sports an average Forward P/E of 43.08, so we one might conclude that Zoom Video Communications is trading at a discount comparatively.
We can also see that ZM currently has a PEG ratio of 0.65. 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 1.76 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 63, which puts it in the top 25% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.