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Why Zoom Video Communications (ZM) Dipped More Than Broader Market Today
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Zoom Video Communications (ZM - Free Report) ended the recent trading session at $61.13, demonstrating a -0.94% swing from the preceding day's closing price. The stock fell short of the S&P 500, which registered a loss of 0.17% for the day. On the other hand, the Dow registered a loss of 0.58%, and the technology-centric Nasdaq increased by 0.27%.
Coming into today, shares of the video-conferencing company had lost 10.37% in the past month. In that same time, the Computer and Technology sector lost 2.16%, while the S&P 500 lost 3.95%.
The investment community will be closely monitoring the performance of Zoom Video Communications in its forthcoming earnings report. In that report, analysts expect Zoom Video Communications to post earnings of $1.08 per share. This would mark year-over-year growth of 0.93%. At the same time, our most recent consensus estimate is projecting a revenue of $1.12 billion, reflecting a 1.47% rise from the equivalent quarter last 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.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Zoom Video Communications. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 remained steady. At present, Zoom Video Communications boasts a Zacks Rank of #2 (Buy).
From a valuation perspective, Zoom Video Communications is currently exchanging hands at a Forward P/E ratio of 13.23. This signifies a discount in comparison to the average Forward P/E of 35.87 for its industry.
It is also worth noting that ZM currently has a PEG ratio of 0.39. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Internet - Software stocks are, on average, holding a PEG ratio of 1.43 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 70, finds itself in the top 28% echelons 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.
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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Why Zoom Video Communications (ZM) Dipped More Than Broader Market Today
Zoom Video Communications (ZM - Free Report) ended the recent trading session at $61.13, demonstrating a -0.94% swing from the preceding day's closing price. The stock fell short of the S&P 500, which registered a loss of 0.17% for the day. On the other hand, the Dow registered a loss of 0.58%, and the technology-centric Nasdaq increased by 0.27%.
Coming into today, shares of the video-conferencing company had lost 10.37% in the past month. In that same time, the Computer and Technology sector lost 2.16%, while the S&P 500 lost 3.95%.
The investment community will be closely monitoring the performance of Zoom Video Communications in its forthcoming earnings report. In that report, analysts expect Zoom Video Communications to post earnings of $1.08 per share. This would mark year-over-year growth of 0.93%. At the same time, our most recent consensus estimate is projecting a revenue of $1.12 billion, reflecting a 1.47% rise from the equivalent quarter last 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.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Zoom Video Communications. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 remained steady. At present, Zoom Video Communications boasts a Zacks Rank of #2 (Buy).
From a valuation perspective, Zoom Video Communications is currently exchanging hands at a Forward P/E ratio of 13.23. This signifies a discount in comparison to the average Forward P/E of 35.87 for its industry.
It is also worth noting that ZM currently has a PEG ratio of 0.39. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Internet - Software stocks are, on average, holding a PEG ratio of 1.43 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 70, finds itself in the top 28% echelons 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.