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Zoom Video Communications (ZM) Gains But Lags Market: What You Should Know
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Zoom Video Communications (ZM - Free Report) closed the latest trading day at $56.21, indicating a +0.88% change from the previous session's end. This move lagged the S&P 500's daily gain of 2.3%. Meanwhile, the Dow experienced a rise of 1.76%, and the technology-dominated Nasdaq saw an increase of 2.87%.
Shares of the video-conferencing company have depreciated by 0.5% over the course of the past month, outperforming the Computer and Technology sector's loss of 13.66% and the S&P 500's loss of 6.5%.
The investment community will be paying close attention to the earnings performance of Zoom Video Communications in its upcoming release. The company is slated to reveal its earnings on August 21, 2024. The company's earnings per share (EPS) are projected to be $1.21, reflecting a 9.7% decrease from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $1.15 billion, indicating a 0.85% growth compared to the corresponding quarter of the prior year.
ZM's full-year Zacks Consensus Estimates are calling for earnings of $5.05 per share and revenue of $4.62 billion. These results would represent year-over-year changes of -3.07% and +1.96%, respectively.
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. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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 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 witnessed a 0.04% increase. At present, Zoom Video Communications boasts a Zacks Rank of #2 (Buy).
Investors should also note Zoom Video Communications's current valuation metrics, including its Forward P/E ratio of 11.04. This represents a discount compared to its industry's average Forward P/E of 29.65.
Investors should also note that ZM has a PEG ratio of 4.12 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Internet - Software industry stood at 1.66 at the close of the market yesterday.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 96, this industry ranks in the top 38% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Zoom Video Communications (ZM) Gains But Lags Market: What You Should Know
Zoom Video Communications (ZM - Free Report) closed the latest trading day at $56.21, indicating a +0.88% change from the previous session's end. This move lagged the S&P 500's daily gain of 2.3%. Meanwhile, the Dow experienced a rise of 1.76%, and the technology-dominated Nasdaq saw an increase of 2.87%.
Shares of the video-conferencing company have depreciated by 0.5% over the course of the past month, outperforming the Computer and Technology sector's loss of 13.66% and the S&P 500's loss of 6.5%.
The investment community will be paying close attention to the earnings performance of Zoom Video Communications in its upcoming release. The company is slated to reveal its earnings on August 21, 2024. The company's earnings per share (EPS) are projected to be $1.21, reflecting a 9.7% decrease from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $1.15 billion, indicating a 0.85% growth compared to the corresponding quarter of the prior year.
ZM's full-year Zacks Consensus Estimates are calling for earnings of $5.05 per share and revenue of $4.62 billion. These results would represent year-over-year changes of -3.07% and +1.96%, respectively.
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. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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 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 witnessed a 0.04% increase. At present, Zoom Video Communications boasts a Zacks Rank of #2 (Buy).
Investors should also note Zoom Video Communications's current valuation metrics, including its Forward P/E ratio of 11.04. This represents a discount compared to its industry's average Forward P/E of 29.65.
Investors should also note that ZM has a PEG ratio of 4.12 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Internet - Software industry stood at 1.66 at the close of the market yesterday.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 96, this industry ranks in the top 38% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.