Zoom Video Communications (ZM) Stock Moves -0.06%: What You Should Know

Zoom Video Communications (ZM) closed the most recent trading day at $252.18, moving -0.06% from the previous trading session. This move was narrower than the S&P 500's daily loss of 0.65%. At the same time, the Dow lost 0.77%, and the tech-heavy Nasdaq lost 1.27%.

Prior to today's trading, shares of the video-conferencing company had gained 1.52% over the past month. This has lagged the Computer and Technology sector's gain of 7.86% and the S&P 500's gain of 7.76% in that time.

ZM will be looking to display strength as it nears its next earnings release. In that report, analysts expect ZM to post earnings of $0.45 per share. This would mark year-over-year growth of 462.5%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $497.52 million, up 241.17% from the year-ago period.

ZM's full-year Zacks Consensus Estimates are calling for earnings of $1.26 per share and revenue of $1.80 billion. These results would represent year-over-year changes of +260% and +188.67%, respectively.

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

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Within the past 30 days, our consensus EPS projection has moved 0.46% higher. ZM currently has a Zacks Rank of #1 (Strong Buy).

Digging into valuation, ZM currently has a Forward P/E ratio of 199.54. Its industry sports an average Forward P/E of 79.96, so we one might conclude that ZM is trading at a premium comparatively.

Investors should also note that ZM has a PEG ratio of 7.98 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 4.34 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 108, which puts it in the top 43% 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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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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