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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 $70.11, marking a +0.24% move from the previous day. This change outpaced the S&P 500's 0.01% gain on the day. Elsewhere, the Dow lost 0.22%, while the tech-heavy Nasdaq added 0.67%.
Coming into today, shares of the video-conferencing company had lost 2.48% in the past month. In that same time, the Computer and Technology sector lost 4.63%, while the S&P 500 lost 4.45%.
Investors will be hoping for strength from Zoom Video Communications as it approaches its next earnings release. On that day, Zoom Video Communications is projected to report earnings of $1.08 per share, which would represent year-over-year growth of 0.93%. Our most recent consensus estimate is calling for quarterly revenue of $1.12 billion, up 1.47% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.66 per share and revenue of $4.49 billion, which would represent changes of +6.64% and +4.56%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Zoom Video Communications. 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.
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.
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 has moved 3.51% higher. Zoom Video Communications is currently a Zacks Rank #2 (Buy).
In terms of valuation, Zoom Video Communications is currently trading at a Forward P/E ratio of 15. This valuation marks a discount compared to its industry's average Forward P/E of 36.37.
It is also worth noting that ZM currently has a PEG ratio of 0.45. 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 1.51 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 76, putting it in the top 31% 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.
Be sure to follow all of these stock-moving metrics, and many more, on 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 $70.11, marking a +0.24% move from the previous day. This change outpaced the S&P 500's 0.01% gain on the day. Elsewhere, the Dow lost 0.22%, while the tech-heavy Nasdaq added 0.67%.
Coming into today, shares of the video-conferencing company had lost 2.48% in the past month. In that same time, the Computer and Technology sector lost 4.63%, while the S&P 500 lost 4.45%.
Investors will be hoping for strength from Zoom Video Communications as it approaches its next earnings release. On that day, Zoom Video Communications is projected to report earnings of $1.08 per share, which would represent year-over-year growth of 0.93%. Our most recent consensus estimate is calling for quarterly revenue of $1.12 billion, up 1.47% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.66 per share and revenue of $4.49 billion, which would represent changes of +6.64% and +4.56%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Zoom Video Communications. 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.
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.
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 has moved 3.51% higher. Zoom Video Communications is currently a Zacks Rank #2 (Buy).
In terms of valuation, Zoom Video Communications is currently trading at a Forward P/E ratio of 15. This valuation marks a discount compared to its industry's average Forward P/E of 36.37.
It is also worth noting that ZM currently has a PEG ratio of 0.45. 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 1.51 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 76, putting it in the top 31% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.