Zoom Video Communications (ZM - Free Report) closed at $80.98 in the latest trading session, marking a +1.28% move from the prior day. This change lagged the S&P 500's 2.37% gain on the day. At the same time, the Dow added 2.47%, and the tech-heavy Nasdaq lost 0.07%.
Heading into today, shares of the video-conferencing company had gained 7.27% over the past month, outpacing the Computer and Technology sector's loss of 5.85% and the S&P 500's loss of 4.82% in that time.
Investors will be hoping for strength from Zoom Video Communications as it approaches its next earnings release. On that day, Zoom Video Communications is projected to report earnings of $0.83 per share, which would represent a year-over-year decline of 25.23%. Meanwhile, our latest consensus estimate is calling for revenue of $1.1 billion, up 4.42% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.71 per share and revenue of $4.39 billion, which would represent changes of -26.82% and +6.98%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Zoom Video Communications. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Zoom Video Communications is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Zoom Video Communications has a Forward P/E ratio of 21.55 right now. For comparison, its industry has an average Forward P/E of 42.08, which means Zoom Video Communications is trading at a discount to the group.
Also, we should mention that ZM has a PEG ratio of 1.11. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Internet - Software stocks are, on average, holding a PEG ratio of 2.07 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 71, putting it in the top 29% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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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Zoom Video Communications (ZM - Free Report) closed at $80.98 in the latest trading session, marking a +1.28% move from the prior day. This change lagged the S&P 500's 2.37% gain on the day. At the same time, the Dow added 2.47%, and the tech-heavy Nasdaq lost 0.07%.
Heading into today, shares of the video-conferencing company had gained 7.27% over the past month, outpacing the Computer and Technology sector's loss of 5.85% and the S&P 500's loss of 4.82% in that time.
Investors will be hoping for strength from Zoom Video Communications as it approaches its next earnings release. On that day, Zoom Video Communications is projected to report earnings of $0.83 per share, which would represent a year-over-year decline of 25.23%. Meanwhile, our latest consensus estimate is calling for revenue of $1.1 billion, up 4.42% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.71 per share and revenue of $4.39 billion, which would represent changes of -26.82% and +6.98%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Zoom Video Communications. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Zoom Video Communications is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Zoom Video Communications has a Forward P/E ratio of 21.55 right now. For comparison, its industry has an average Forward P/E of 42.08, which means Zoom Video Communications is trading at a discount to the group.
Also, we should mention that ZM has a PEG ratio of 1.11. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Internet - Software stocks are, on average, holding a PEG ratio of 2.07 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 71, putting it in the top 29% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Free Report Reveals How You Could Profit from the Growing Electric Vehicle Industry
Globally, electric car sales continue their remarkable growth even after breaking records in 2021. High gas prices have fueled his demand, but so has evolving EV comfort, features and technology. So, the fervor for EVs will be around long after gas prices normalize. Not only are manufacturers seeing record-high profits, but producers of EV-related technology are raking in the dough as well. Do you know how to cash in? If not, we have the perfect report for you – and it’s FREE! Today, don't miss your chance to download Zacks' top 5 stocks for the electric vehicle revolution at no cost and with no obligation.
>>Send me my free report on the top 5 EV stocks<<
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