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Zoom Video Communications (ZM) Beats Stock Market Upswing: What Investors Need to Know
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Zoom Video Communications (ZM - Free Report) closed the latest trading day at $66.10, indicating a +0.95% change from the previous session's end. This change outpaced the S&P 500's 0.63% gain on the day. At the same time, the Dow added 0.59%, and the tech-heavy Nasdaq gained 0.39%.
Coming into today, shares of the video-conferencing company had lost 9.13% in the past month. In that same time, the Computer and Technology sector lost 2.3%, while the S&P 500 lost 3.39%.
Analysts and investors alike will be keeping a close eye on the performance of Zoom Video Communications in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $1.08, reflecting a 0.93% increase from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $1.12 billion, indicating a 1.47% growth compared to the corresponding quarter of the prior year.
ZM's full-year Zacks Consensus Estimates are calling for earnings of $4.66 per share and revenue of $4.49 billion. These results would represent year-over-year changes of +6.64% and +2.24%, respectively.
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. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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. Within the past 30 days, our consensus EPS projection remained stagnant. As of now, Zoom Video Communications holds a Zacks Rank of #2 (Buy).
In the context of valuation, Zoom Video Communications is at present trading with a Forward P/E ratio of 14.04. This denotes a discount relative to the industry's average Forward P/E of 37.56.
Investors should also note that ZM has a PEG ratio of 0.42 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Internet - Software industry stood at 1.52 at the close of the market yesterday.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 63, this industry ranks in the top 25% of all industries, numbering over 250.
The Zacks Industry Rank is ordered 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Zoom Video Communications (ZM) Beats Stock Market Upswing: What Investors Need to Know
Zoom Video Communications (ZM - Free Report) closed the latest trading day at $66.10, indicating a +0.95% change from the previous session's end. This change outpaced the S&P 500's 0.63% gain on the day. At the same time, the Dow added 0.59%, and the tech-heavy Nasdaq gained 0.39%.
Coming into today, shares of the video-conferencing company had lost 9.13% in the past month. In that same time, the Computer and Technology sector lost 2.3%, while the S&P 500 lost 3.39%.
Analysts and investors alike will be keeping a close eye on the performance of Zoom Video Communications in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $1.08, reflecting a 0.93% increase from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $1.12 billion, indicating a 1.47% growth compared to the corresponding quarter of the prior year.
ZM's full-year Zacks Consensus Estimates are calling for earnings of $4.66 per share and revenue of $4.49 billion. These results would represent year-over-year changes of +6.64% and +2.24%, respectively.
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. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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. Within the past 30 days, our consensus EPS projection remained stagnant. As of now, Zoom Video Communications holds a Zacks Rank of #2 (Buy).
In the context of valuation, Zoom Video Communications is at present trading with a Forward P/E ratio of 14.04. This denotes a discount relative to the industry's average Forward P/E of 37.56.
Investors should also note that ZM has a PEG ratio of 0.42 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Internet - Software industry stood at 1.52 at the close of the market yesterday.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 63, this industry ranks in the top 25% of all industries, numbering over 250.
The Zacks Industry Rank is ordered 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.