A month has gone by since the last earnings report for Zoom Communications (ZM Quick QuoteZM - Free Report) . Shares have added about 5.3% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Zoom due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.

How Have Estimates Been Moving Since Then?

It turns out, estimates revision flatlined during the past month.

VGM Scores

At this time, Zoom has an average Growth Score of C, however its Momentum Score is doing a bit better with a B. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Zoom has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.

Performance of an Industry Player

Zoom is part of the Zacks Internet - Software industry. Over the past month, Paycom Software (PAYC Quick QuotePAYC - Free Report) , a stock from the same industry, has gained 2%. The company reported its results for the quarter ended December 2024 more than a month ago.

Paycom reported revenues of $493.8 million in the last reported quarter, representing a year-over-year change of +13.6%. EPS of $2.32 for the same period compares with $1.93 a year ago.

For the current quarter, Paycom is expected to post earnings of $2.62 per share, indicating a change of +1.2% from the year-ago quarter. The Zacks Consensus Estimate has changed -1.4% over the last 30 days.

Paycom has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.