Back to top

Image: Bigstock

Zoom Video Communications (ZM) Stock Slides as Market Rises: Facts to Know Before You Trade

Read MoreHide Full Article

Zoom Video Communications (ZM - Free Report) closed the most recent trading day at $59.28, moving -1.59% from the previous trading session. The stock trailed the S&P 500, which registered a daily gain of 0.03%. Elsewhere, the Dow gained 0.41%, while the tech-heavy Nasdaq added 0.12%.

The video-conferencing company's stock has dropped by 9.04% in the past month, falling short of the Computer and Technology sector's loss of 0.55% and the S&P 500's loss of 0.9%.

The investment community will be paying close attention to the earnings performance of Zoom Video Communications in its upcoming release. In that report, analysts expect Zoom Video Communications to post earnings of $1.19 per share. This would mark year-over-year growth of 2.59%. Meanwhile, our latest consensus estimate is calling for revenue of $1.13 billion, up 1.81% from the prior-year quarter.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $4.89 per share and a revenue of $4.6 billion, representing changes of -6.14% and +1.64%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Zoom Video Communications. These latest adjustments often mirror the shifting dynamics of short-term business patterns. 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. 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, 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. Over the past month, the Zacks Consensus EPS estimate has shifted 0.19% upward. As of now, Zoom Video Communications holds a Zacks Rank of #2 (Buy).

From a valuation perspective, Zoom Video Communications is currently exchanging hands at a Forward P/E ratio of 12.31. This expresses a discount compared to the average Forward P/E of 27.33 of its industry.

The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 47, this industry ranks in the top 19% 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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Zoom Video Communications, Inc. (ZM) - free report >>

Published in