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Zoom Video Communications (ZM) Gains But Lags Market: What You Should Know
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In the latest trading session, Zoom Video Communications (ZM - Free Report) closed at $63.18, marking a +0.69% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 1.06%. On the other hand, the Dow registered a gain of 0.93%, and the technology-centric Nasdaq increased by 1.2%.
Prior to today's trading, shares of the video-conferencing company had lost 11.76% over the past month. This has lagged the Computer and Technology sector's loss of 2.02% and the S&P 500's loss of 3% in that time.
Market participants will be closely following the financial results of Zoom Video Communications in its upcoming release. It is anticipated that the company will report an EPS of $1.08, marking a 0.93% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.12 billion, up 1.47% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $4.66 per share and a revenue of $4.49 billion, representing changes of +6.64% and +2.24%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Zoom Video Communications. These latest adjustments often mirror the shifting dynamics of short-term business patterns. 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 exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Currently, Zoom Video Communications is carrying a Zacks Rank of #2 (Buy).
From a valuation perspective, Zoom Video Communications is currently exchanging hands at a Forward P/E ratio of 13.46. Its industry sports an average Forward P/E of 36.33, so one might conclude that Zoom Video Communications is trading at a discount comparatively.
We can additionally observe that ZM currently boasts a PEG ratio of 0.4. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. ZM's industry had an average PEG ratio of 1.46 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 69, placing it within the top 28% of over 250 industries.
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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Zoom Video Communications (ZM) Gains But Lags Market: What You Should Know
In the latest trading session, Zoom Video Communications (ZM - Free Report) closed at $63.18, marking a +0.69% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 1.06%. On the other hand, the Dow registered a gain of 0.93%, and the technology-centric Nasdaq increased by 1.2%.
Prior to today's trading, shares of the video-conferencing company had lost 11.76% over the past month. This has lagged the Computer and Technology sector's loss of 2.02% and the S&P 500's loss of 3% in that time.
Market participants will be closely following the financial results of Zoom Video Communications in its upcoming release. It is anticipated that the company will report an EPS of $1.08, marking a 0.93% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.12 billion, up 1.47% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $4.66 per share and a revenue of $4.49 billion, representing changes of +6.64% and +2.24%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Zoom Video Communications. These latest adjustments often mirror the shifting dynamics of short-term business patterns. 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 exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Currently, Zoom Video Communications is carrying a Zacks Rank of #2 (Buy).
From a valuation perspective, Zoom Video Communications is currently exchanging hands at a Forward P/E ratio of 13.46. Its industry sports an average Forward P/E of 36.33, so one might conclude that Zoom Video Communications is trading at a discount comparatively.
We can additionally observe that ZM currently boasts a PEG ratio of 0.4. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. ZM's industry had an average PEG ratio of 1.46 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 69, placing it within the top 28% of over 250 industries.
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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.