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Zoom Video Communications (ZM) Outperforms Broader Market: What You Need to Know
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In the latest market close, Zoom Video Communications (ZM - Free Report) reached $57, with a +0.62% movement compared to the previous day. The stock outperformed the S&P 500, which registered a daily gain of 0.38%. Meanwhile, the Dow gained 0.61%, and the Nasdaq, a tech-heavy index, added 0.03%.
The the stock of video-conferencing company has fallen by 4.24% in the past month, leading the Computer and Technology sector's loss of 7.5% and undershooting the S&P 500's loss of 3.2%.
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. In that report, analysts expect Zoom Video Communications to post earnings of $1.21 per share. This would mark a year-over-year decline of 9.7%. Meanwhile, our latest consensus estimate is calling for revenue of $1.15 billion, up 0.85% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $5.05 per share and revenue of $4.62 billion. These totals would mark changes of -3.07% and +1.96%, respectively, from last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Zoom Video Communications. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Zoom Video Communications presently features a Zacks Rank of #2 (Buy).
Looking at its valuation, Zoom Video Communications is holding a Forward P/E ratio of 11.23. For comparison, its industry has an average Forward P/E of 28.45, which means Zoom Video Communications is trading at a discount to the group.
We can also see that ZM currently has a PEG ratio of 4.19. 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. As of the close of trade yesterday, the Internet - Software industry held an average PEG ratio of 1.73.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 95, which puts it in the top 38% of all 250+ industries.
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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Zoom Video Communications (ZM) Outperforms Broader Market: What You Need to Know
In the latest market close, Zoom Video Communications (ZM - Free Report) reached $57, with a +0.62% movement compared to the previous day. The stock outperformed the S&P 500, which registered a daily gain of 0.38%. Meanwhile, the Dow gained 0.61%, and the Nasdaq, a tech-heavy index, added 0.03%.
The the stock of video-conferencing company has fallen by 4.24% in the past month, leading the Computer and Technology sector's loss of 7.5% and undershooting the S&P 500's loss of 3.2%.
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. In that report, analysts expect Zoom Video Communications to post earnings of $1.21 per share. This would mark a year-over-year decline of 9.7%. Meanwhile, our latest consensus estimate is calling for revenue of $1.15 billion, up 0.85% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $5.05 per share and revenue of $4.62 billion. These totals would mark changes of -3.07% and +1.96%, respectively, from last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Zoom Video Communications. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Zoom Video Communications presently features a Zacks Rank of #2 (Buy).
Looking at its valuation, Zoom Video Communications is holding a Forward P/E ratio of 11.23. For comparison, its industry has an average Forward P/E of 28.45, which means Zoom Video Communications is trading at a discount to the group.
We can also see that ZM currently has a PEG ratio of 4.19. 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. As of the close of trade yesterday, the Internet - Software industry held an average PEG ratio of 1.73.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 95, which puts it in the top 38% of all 250+ industries.
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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.