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Zoom Video Communications (ZM) Rises But Trails Market: What Investors Should Know
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The latest trading session saw Zoom Video Communications (ZM - Free Report) ending at $60.09, denoting a +0.81% adjustment from its last day's close. The stock's performance was behind the S&P 500's daily gain of 1.11%. Elsewhere, the Dow gained 1.64%, while the tech-heavy Nasdaq added 1.03%.
Shares of the video-conferencing company witnessed a gain of 1.95% over the previous month, beating the performance of the Computer and Technology sector with its loss of 5.32% and the S&P 500's loss of 1.16%.
The investment community will be closely monitoring the performance of Zoom Video Communications in its forthcoming earnings report. The company is expected to report EPS of $1.21, down 9.7% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.15 billion, up 0.85% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $5.05 per share and a revenue of $4.62 billion, demonstrating changes of -3.07% and +1.96%, respectively, from the preceding year.
It is also important to note the recent changes to analyst estimates for Zoom Video Communications. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.04% higher. Right now, Zoom Video Communications possesses a Zacks Rank of #2 (Buy).
With respect to valuation, Zoom Video Communications is currently being traded at a Forward P/E ratio of 11.81. Its industry sports an average Forward P/E of 31.06, so one might conclude that Zoom Video Communications is trading at a discount comparatively.
Meanwhile, ZM's PEG ratio is currently 4.41. 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 1.79.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 96, placing it within the top 39% of over 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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Zoom Video Communications (ZM) Rises But Trails Market: What Investors Should Know
The latest trading session saw Zoom Video Communications (ZM - Free Report) ending at $60.09, denoting a +0.81% adjustment from its last day's close. The stock's performance was behind the S&P 500's daily gain of 1.11%. Elsewhere, the Dow gained 1.64%, while the tech-heavy Nasdaq added 1.03%.
Shares of the video-conferencing company witnessed a gain of 1.95% over the previous month, beating the performance of the Computer and Technology sector with its loss of 5.32% and the S&P 500's loss of 1.16%.
The investment community will be closely monitoring the performance of Zoom Video Communications in its forthcoming earnings report. The company is expected to report EPS of $1.21, down 9.7% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.15 billion, up 0.85% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $5.05 per share and a revenue of $4.62 billion, demonstrating changes of -3.07% and +1.96%, respectively, from the preceding year.
It is also important to note the recent changes to analyst estimates for Zoom Video Communications. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.04% higher. Right now, Zoom Video Communications possesses a Zacks Rank of #2 (Buy).
With respect to valuation, Zoom Video Communications is currently being traded at a Forward P/E ratio of 11.81. Its industry sports an average Forward P/E of 31.06, so one might conclude that Zoom Video Communications is trading at a discount comparatively.
Meanwhile, ZM's PEG ratio is currently 4.41. 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 1.79.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 96, placing it within the top 39% of over 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.