Zoom Video Communications (ZM) Rises As Market Takes a Dip: Key Facts

Zoom Video Communications (ZM) closed at $63.01 in the latest trading session, marking a +0.11% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.04%. On the other hand, the Dow registered a loss of 0.03%, and the technology-centric Nasdaq increased by 0.03%.

Prior to today's trading, shares of the video-conferencing company had lost 6.28% over the past month. This has lagged the Computer and Technology sector's gain of 4.26% and the S&P 500's gain of 2.57% in that time.

The upcoming earnings release of Zoom Video Communications will be of great interest to investors. It is anticipated that the company will report an EPS of $1.19, marking a 2.59% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $1.13 billion, indicating a 1.81% upward movement from the same quarter last year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.89 per share and revenue of $4.6 billion. These totals would mark changes of -6.14% and +1.64%, respectively, from last year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Zoom Video Communications. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 3.45% increase. Currently, Zoom Video Communications is carrying a Zacks Rank of #2 (Buy).

In terms of valuation, Zoom Video Communications is currently trading at a Forward P/E ratio of 12.86. This expresses a discount compared to the average Forward P/E of 28.21 of its industry.

The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 37, this industry ranks in the top 15% of all industries, numbering over 250.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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