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Zoom Video Communications (ZM) Gains As Market Dips: What You Should Know

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Zoom Video Communications (ZM - Free Report) closed at $97.11 in the latest trading session, marking a +1.22% move from the prior day. This move outpaced the S&P 500's daily loss of 0.53%. At the same time, the Dow lost 0.47%, and the tech-heavy Nasdaq lost 1%.

Prior to today's trading, shares of the video-conferencing company had gained 11.13% over the past month. This has outpaced the Computer and Technology sector's gain of 3.84% and the S&P 500's gain of 2.68% in that time.

Investors will be hoping for strength from ZM as it approaches its next earnings release.

Any recent changes to analyst estimates for ZM should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. ZM is currently sporting a Zacks Rank of #2 (Buy).

In terms of valuation, ZM is currently trading at a Forward P/E ratio of 5396.63. For comparison, its industry has an average Forward P/E of 66.68, which means ZM is trading at a premium to the group.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 50, putting it in the top 20% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within 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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