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Zoom Video Communications (ZM) Ascends While Market Falls: Some Facts to Note
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Zoom Video Communications (ZM - Free Report) closed the most recent trading day at $59.15, moving +0.08% from the previous trading session. The stock's change was more than the S&P 500's daily loss of 0.78%. Meanwhile, the Dow lost 1.29%, and the Nasdaq, a tech-heavy index, lost 0.7%.
The video-conferencing company's shares have seen an increase of 5.14% over the last month, surpassing the Computer and Technology sector's loss of 3.17% and the S&P 500's gain of 2.14%.
The investment community will be paying close attention to the earnings performance of Zoom Video Communications in its upcoming release. On that day, Zoom Video Communications is projected to report earnings of $1.21 per share, which would represent a year-over-year decline of 9.7%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.15 billion, up 0.85% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $5.05 per share and revenue of $4.62 billion, indicating changes of -3.07% and +1.96%, respectively, compared to the previous year.
Investors should also pay attention to any latest changes in analyst estimates for Zoom Video Communications. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.04% higher. As of now, Zoom Video Communications holds a Zacks Rank of #2 (Buy).
In the context of valuation, Zoom Video Communications is at present trading with a Forward P/E ratio of 11.71. This indicates a discount in contrast to its industry's Forward P/E of 29.59.
It's also important to note that ZM currently trades at a PEG ratio of 4.37. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 1.77.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 90, finds itself in the top 36% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Zoom Video Communications (ZM) Ascends While Market Falls: Some Facts to Note
Zoom Video Communications (ZM - Free Report) closed the most recent trading day at $59.15, moving +0.08% from the previous trading session. The stock's change was more than the S&P 500's daily loss of 0.78%. Meanwhile, the Dow lost 1.29%, and the Nasdaq, a tech-heavy index, lost 0.7%.
The video-conferencing company's shares have seen an increase of 5.14% over the last month, surpassing the Computer and Technology sector's loss of 3.17% and the S&P 500's gain of 2.14%.
The investment community will be paying close attention to the earnings performance of Zoom Video Communications in its upcoming release. On that day, Zoom Video Communications is projected to report earnings of $1.21 per share, which would represent a year-over-year decline of 9.7%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.15 billion, up 0.85% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $5.05 per share and revenue of $4.62 billion, indicating changes of -3.07% and +1.96%, respectively, compared to the previous year.
Investors should also pay attention to any latest changes in analyst estimates for Zoom Video Communications. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.04% higher. As of now, Zoom Video Communications holds a Zacks Rank of #2 (Buy).
In the context of valuation, Zoom Video Communications is at present trading with a Forward P/E ratio of 11.71. This indicates a discount in contrast to its industry's Forward P/E of 29.59.
It's also important to note that ZM currently trades at a PEG ratio of 4.37. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 1.77.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 90, finds itself in the top 36% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.