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Why the Market Dipped But Zoom Video Communications (ZM) Gained Today
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The most recent trading session ended with Zoom Video Communications (ZM - Free Report) standing at $70.20, reflecting a +1.84% shift from the previouse trading day's closing. The stock outpaced the S&P 500's daily loss of 0.02%. Elsewhere, the Dow saw an upswing of 0.38%, while the tech-heavy Nasdaq appreciated by 0.04%.
Prior to today's trading, shares of the video-conferencing company had gained 4.38% over the past month. This has lagged the Computer and Technology sector's gain of 4.44% and outpaced the S&P 500's gain of 3.77% in that time.
Market participants will be closely following the financial results of Zoom Video Communications in its upcoming release. The company's upcoming EPS is projected at $1.30, signifying a 0.78% increase compared to the same quarter of the previous 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.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $5.31 per share and revenue of $4.64 billion, indicating changes of +1.92% and +2.42%, respectively, compared to the previous year.
Investors should also take note of any recent adjustments to analyst estimates for Zoom Video Communications. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Zoom Video Communications presently features a Zacks Rank of #2 (Buy).
Looking at its valuation, Zoom Video Communications is holding a Forward P/E ratio of 12.98. For comparison, its industry has an average Forward P/E of 32.19, which means Zoom Video Communications is trading at a discount to the group.
One should further note that ZM currently holds a PEG ratio of 3.07. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Internet - Software was holding an average PEG ratio of 2.13 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 78, which puts it in the top 31% of all 250+ industries.
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.
To follow ZM in the coming trading sessions, be sure to utilize Zacks.com.
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Why the Market Dipped But Zoom Video Communications (ZM) Gained Today
The most recent trading session ended with Zoom Video Communications (ZM - Free Report) standing at $70.20, reflecting a +1.84% shift from the previouse trading day's closing. The stock outpaced the S&P 500's daily loss of 0.02%. Elsewhere, the Dow saw an upswing of 0.38%, while the tech-heavy Nasdaq appreciated by 0.04%.
Prior to today's trading, shares of the video-conferencing company had gained 4.38% over the past month. This has lagged the Computer and Technology sector's gain of 4.44% and outpaced the S&P 500's gain of 3.77% in that time.
Market participants will be closely following the financial results of Zoom Video Communications in its upcoming release. The company's upcoming EPS is projected at $1.30, signifying a 0.78% increase compared to the same quarter of the previous 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.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $5.31 per share and revenue of $4.64 billion, indicating changes of +1.92% and +2.42%, respectively, compared to the previous year.
Investors should also take note of any recent adjustments to analyst estimates for Zoom Video Communications. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Zoom Video Communications presently features a Zacks Rank of #2 (Buy).
Looking at its valuation, Zoom Video Communications is holding a Forward P/E ratio of 12.98. For comparison, its industry has an average Forward P/E of 32.19, which means Zoom Video Communications is trading at a discount to the group.
One should further note that ZM currently holds a PEG ratio of 3.07. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Internet - Software was holding an average PEG ratio of 2.13 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 78, which puts it in the top 31% of all 250+ industries.
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.
To follow ZM in the coming trading sessions, be sure to utilize Zacks.com.