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Zoom Video Communications (ZM) Ascends While Market Falls: Some Facts to Note
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In the latest market close, Zoom Video Communications (ZM - Free Report) reached $70.85, with a +1.26% movement compared to the previous day. This change outpaced the S&P 500's 0.21% loss on the day. Meanwhile, the Dow experienced a drop of 0.14%, and the technology-dominated Nasdaq saw a decrease of 0.05%.
Shares of the video-conferencing company witnessed a gain of 3.97% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 9.62% and the S&P 500's gain of 5.94%.
Market participants will be closely following the financial results of Zoom Video Communications in its upcoming release. The company is predicted to post an EPS of $1.30, indicating a 0.78% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $1.16 billion, indicating a 2.32% growth compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $5.31 per share and a revenue of $4.64 billion, representing changes of +1.92% and +2.42%, respectively, from the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Zoom Video Communications. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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.
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 past month, the Zacks Consensus EPS estimate has shifted 1.82% upward. At present, Zoom Video Communications boasts a Zacks Rank of #2 (Buy).
Investors should also note Zoom Video Communications's current valuation metrics, including its Forward P/E ratio of 13.17. For comparison, its industry has an average Forward P/E of 31.19, which means Zoom Video Communications is trading at a discount to the group.
Also, we should mention that ZM has a PEG ratio of 3.11. 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 2.03 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 69, this industry ranks in the top 28% of all industries, numbering over 250.
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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Zoom Video Communications (ZM) Ascends While Market Falls: Some Facts to Note
In the latest market close, Zoom Video Communications (ZM - Free Report) reached $70.85, with a +1.26% movement compared to the previous day. This change outpaced the S&P 500's 0.21% loss on the day. Meanwhile, the Dow experienced a drop of 0.14%, and the technology-dominated Nasdaq saw a decrease of 0.05%.
Shares of the video-conferencing company witnessed a gain of 3.97% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 9.62% and the S&P 500's gain of 5.94%.
Market participants will be closely following the financial results of Zoom Video Communications in its upcoming release. The company is predicted to post an EPS of $1.30, indicating a 0.78% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $1.16 billion, indicating a 2.32% growth compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $5.31 per share and a revenue of $4.64 billion, representing changes of +1.92% and +2.42%, respectively, from the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Zoom Video Communications. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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.
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 past month, the Zacks Consensus EPS estimate has shifted 1.82% upward. At present, Zoom Video Communications boasts a Zacks Rank of #2 (Buy).
Investors should also note Zoom Video Communications's current valuation metrics, including its Forward P/E ratio of 13.17. For comparison, its industry has an average Forward P/E of 31.19, which means Zoom Video Communications is trading at a discount to the group.
Also, we should mention that ZM has a PEG ratio of 3.11. 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 2.03 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 69, this industry ranks in the top 28% of all industries, numbering over 250.
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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.