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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 $161.97, moving -1.24% from the previous trading session. This move lagged the S&P 500's daily gain of 1.48%. Elsewhere, the Dow gained 2.21%, while the tech-heavy Nasdaq added 0.77%.
ZM will be looking to display strength as it nears its next earnings release, which is expected to be June 2, 2020. In that report, analysts expect ZM to post earnings of $0.10 per share. This would mark year-over-year growth of 233.33%. Meanwhile, our latest consensus estimate is calling for revenue of $203.02 million, up 66.42% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.43 per share and revenue of $931.31 million. These totals would mark changes of +22.86% and +49.57%, respectively, from last year.
Investors should also note any 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. ZM currently has a Zacks Rank of #3 (Hold).
In terms of valuation, ZM is currently trading at a Forward P/E ratio of 8200. Its industry sports an average Forward P/E of 43.97, so we one might conclude that ZM is trading at a premium comparatively.
Also, we should mention that ZM has a PEG ratio of 308.73. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Software industry currently had an average PEG ratio of 3.52 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 30, putting it in the top 12% 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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Zoom Video Communications (ZM) Stock Sinks As Market Gains: What You Should Know
Zoom Video Communications (ZM - Free Report) closed the most recent trading day at $161.97, moving -1.24% from the previous trading session. This move lagged the S&P 500's daily gain of 1.48%. Elsewhere, the Dow gained 2.21%, while the tech-heavy Nasdaq added 0.77%.
ZM will be looking to display strength as it nears its next earnings release, which is expected to be June 2, 2020. In that report, analysts expect ZM to post earnings of $0.10 per share. This would mark year-over-year growth of 233.33%. Meanwhile, our latest consensus estimate is calling for revenue of $203.02 million, up 66.42% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.43 per share and revenue of $931.31 million. These totals would mark changes of +22.86% and +49.57%, respectively, from last year.
Investors should also note any 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. ZM currently has a Zacks Rank of #3 (Hold).
In terms of valuation, ZM is currently trading at a Forward P/E ratio of 8200. Its industry sports an average Forward P/E of 43.97, so we one might conclude that ZM is trading at a premium comparatively.
Also, we should mention that ZM has a PEG ratio of 308.73. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Software industry currently had an average PEG ratio of 3.52 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 30, putting it in the top 12% 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.