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Zoom Video Communications (ZM) Stock Falls Amid Market Uptick: What Investors Need to Know
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The latest trading session saw Zoom Video Communications (ZM - Free Report) ending at $57.40, denoting a -1.48% adjustment from its last day's close. This change lagged the S&P 500's 0.1% gain on the day. Meanwhile, the Dow lost 0.08%, and the Nasdaq, a tech-heavy index, added 0.28%.
The the stock of video-conferencing company has fallen by 7.29% in the past month, lagging the Computer and Technology sector's gain of 8.41% and the S&P 500's gain of 4.08%.
Investors will be eagerly watching for the performance of Zoom Video Communications in its upcoming earnings disclosure. The company is predicted to post an EPS of $1.21, indicating a 9.7% decline compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $1.15 billion, reflecting a 0.85% rise from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.04 per share and a revenue of $4.62 billion, indicating changes of -3.26% and +1.96%, respectively, from the former year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Zoom Video Communications. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 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 moved 2.06% higher. Currently, Zoom Video Communications is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, Zoom Video Communications is presently being traded at a Forward P/E ratio of 11.55. This valuation marks a discount compared to its industry's average Forward P/E of 29.89.
Meanwhile, ZM's PEG ratio is currently 4.31. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Software industry currently had an average PEG ratio of 1.74 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 84, which puts it in the top 34% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Zoom Video Communications (ZM) Stock Falls Amid Market Uptick: What Investors Need to Know
The latest trading session saw Zoom Video Communications (ZM - Free Report) ending at $57.40, denoting a -1.48% adjustment from its last day's close. This change lagged the S&P 500's 0.1% gain on the day. Meanwhile, the Dow lost 0.08%, and the Nasdaq, a tech-heavy index, added 0.28%.
The the stock of video-conferencing company has fallen by 7.29% in the past month, lagging the Computer and Technology sector's gain of 8.41% and the S&P 500's gain of 4.08%.
Investors will be eagerly watching for the performance of Zoom Video Communications in its upcoming earnings disclosure. The company is predicted to post an EPS of $1.21, indicating a 9.7% decline compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $1.15 billion, reflecting a 0.85% rise from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.04 per share and a revenue of $4.62 billion, indicating changes of -3.26% and +1.96%, respectively, from the former year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Zoom Video Communications. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 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 moved 2.06% higher. Currently, Zoom Video Communications is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, Zoom Video Communications is presently being traded at a Forward P/E ratio of 11.55. This valuation marks a discount compared to its industry's average Forward P/E of 29.89.
Meanwhile, ZM's PEG ratio is currently 4.31. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Software industry currently had an average PEG ratio of 1.74 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 84, which puts it in the top 34% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.