Zoom Video Communications (ZM) Gains As Market Dips: What You Should Know
Zoom Video Communications (ZM) closed the most recent trading day at $568.34, moving +1.67% from the previous trading session. This move outpaced the S&P 500's daily loss of 1.63%. Meanwhile, the Dow lost 1.44%, and the Nasdaq, a tech-heavy index, lost 1.65%.
Prior to today's trading, shares of the video-conferencing company had gained 35.31% over the past month. This has outpaced the Computer and Technology sector's gain of 5.81% and the S&P 500's gain of 2.86% in that time.
Wall Street will be looking for positivity from ZM as it approaches its next earnings report date. The company is expected to report EPS of $0.75, up 733.33% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $694.51 million, up 316.9% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.48 per share and revenue of $2.40 billion. These totals would mark changes of +608.57% and +285.82%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for ZM. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 15.46% higher. ZM is currently a Zacks Rank #1 (Strong Buy).
Looking at its valuation, ZM is holding a Forward P/E ratio of 225.16. This valuation marks a premium compared to its industry's average Forward P/E of 86.08.
Investors should also note that ZM has a PEG ratio of 9.01 right now. 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. ZM's industry had an average PEG ratio of 6.71 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 168, which puts it in the bottom 34% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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, Inc. (ZM): Free Stock Analysis Report
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