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

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Zoom Video Communications (ZM - Free Report) closed the most recent trading day at $74.47, moving -1.51% from the previous trading session. This move lagged the S&P 500's daily gain of 0.11%. At the same time, the Dow lost 0.09%, and the tech-heavy Nasdaq gained 0.2%.

Coming into today, shares of the video-conferencing company had gained 13.77% in the past month. In that same time, the Computer and Technology sector gained 6.56%, while the S&P 500 gained 3.25%.

ZM will be looking to display strength as it nears its next earnings release.

Investors might also notice recent changes to analyst estimates for ZM. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 a Zacks Rank #2 (Buy).

Valuation is also important, so investors should note that ZM has a Forward P/E ratio of 279.1 right now. This valuation marks a premium compared to its industry's average Forward P/E of 58.24.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 103, putting it in the top 41% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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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