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Here's Why Zoom Video Communications (ZM) Fell More Than Broader Market
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The latest trading session saw Zoom Video Communications (ZM - Free Report) ending at $61.54, denoting a -0.84% adjustment from its last day's close. The stock fell short of the S&P 500, which registered a loss of 0.08% for the day. Meanwhile, the Dow experienced a rise of 0.16%, and the technology-dominated Nasdaq saw a decrease of 0.22%.
Prior to today's trading, shares of the video-conferencing company had lost 1.1% over the past month. This has lagged the Computer and Technology sector's gain of 2.9% and the S&P 500's gain of 1.42% in that time.
The upcoming earnings release of Zoom Video Communications will be of great interest to investors. The company's earnings report is expected on November 20, 2023. 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. 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.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $4.66 per share and a revenue of $4.49 billion, indicating changes of +6.64% and +2.24%, respectively, from the former year.
Any recent changes to analyst estimates for Zoom Video Communications should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Zoom Video Communications is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note Zoom Video Communications's current valuation metrics, including its Forward P/E ratio of 13.31. This expresses a discount compared to the average Forward P/E of 33.32 of its industry.
Investors should also note that ZM has a PEG ratio of 0.4 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Internet - Software industry currently had an average PEG ratio of 1.45 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 59, finds itself in the top 24% echelons of all 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.
To follow ZM in the coming trading sessions, be sure to utilize Zacks.com.
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Here's Why Zoom Video Communications (ZM) Fell More Than Broader Market
The latest trading session saw Zoom Video Communications (ZM - Free Report) ending at $61.54, denoting a -0.84% adjustment from its last day's close. The stock fell short of the S&P 500, which registered a loss of 0.08% for the day. Meanwhile, the Dow experienced a rise of 0.16%, and the technology-dominated Nasdaq saw a decrease of 0.22%.
Prior to today's trading, shares of the video-conferencing company had lost 1.1% over the past month. This has lagged the Computer and Technology sector's gain of 2.9% and the S&P 500's gain of 1.42% in that time.
The upcoming earnings release of Zoom Video Communications will be of great interest to investors. The company's earnings report is expected on November 20, 2023. 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. 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.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $4.66 per share and a revenue of $4.49 billion, indicating changes of +6.64% and +2.24%, respectively, from the former year.
Any recent changes to analyst estimates for Zoom Video Communications should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Zoom Video Communications is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note Zoom Video Communications's current valuation metrics, including its Forward P/E ratio of 13.31. This expresses a discount compared to the average Forward P/E of 33.32 of its industry.
Investors should also note that ZM has a PEG ratio of 0.4 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Internet - Software industry currently had an average PEG ratio of 1.45 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 59, finds itself in the top 24% echelons of all 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.
To follow ZM in the coming trading sessions, be sure to utilize Zacks.com.