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Zoom Video Communications, Inc. (ZM) Stock Sinks As Market Gains: What You Should Know
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Zoom Video Communications, Inc. (ZM - Free Report) closed at $342.50 in the latest trading session, marking a -0.55% move from the prior day. This change lagged the S&P 500's daily gain of 1.49%. Elsewhere, the Dow gained 0.69%, while the tech-heavy Nasdaq added 2.56%.
Heading into today, shares of the company had lost 10.63% over the past month, lagging the Computer and Technology sector's gain of 0.53% and the S&P 500's gain of 1.44% in that time.
Investors will be hoping for strength from ZM as it approaches its next earnings release. In that report, analysts expect ZM to post earnings of $0.78 per share. This would mark year-over-year growth of 420%. Meanwhile, our latest consensus estimate is calling for revenue of $809.06 million, up 329.78% from the prior-year quarter.
ZM's full-year Zacks Consensus Estimates are calling for earnings of $2.85 per share and revenue of $2.58 billion. These results would represent year-over-year changes of +714.29% and +314.03%, respectively.
Investors might also notice recent changes to analyst estimates for ZM. These revisions help to show the ever-changing nature of near-term business trends. 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.
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. Within the past 30 days, our consensus EPS projection remained stagnant. ZM is currently a Zacks Rank #3 (Hold).
In terms of valuation, ZM is currently trading at a Forward P/E ratio of 120.8. This represents a premium compared to its industry's average Forward P/E of 79.95.
It is also worth noting that ZM currently has a PEG ratio of 4.83. 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. The Internet - Software industry currently had an average PEG ratio of 4.21 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 198, which puts it in the bottom 23% 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.
To follow ZM in the coming trading sessions, be sure to utilize Zacks.com.
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Zoom Video Communications, Inc. (ZM) Stock Sinks As Market Gains: What You Should Know
Zoom Video Communications, Inc. (ZM - Free Report) closed at $342.50 in the latest trading session, marking a -0.55% move from the prior day. This change lagged the S&P 500's daily gain of 1.49%. Elsewhere, the Dow gained 0.69%, while the tech-heavy Nasdaq added 2.56%.
Heading into today, shares of the company had lost 10.63% over the past month, lagging the Computer and Technology sector's gain of 0.53% and the S&P 500's gain of 1.44% in that time.
Investors will be hoping for strength from ZM as it approaches its next earnings release. In that report, analysts expect ZM to post earnings of $0.78 per share. This would mark year-over-year growth of 420%. Meanwhile, our latest consensus estimate is calling for revenue of $809.06 million, up 329.78% from the prior-year quarter.
ZM's full-year Zacks Consensus Estimates are calling for earnings of $2.85 per share and revenue of $2.58 billion. These results would represent year-over-year changes of +714.29% and +314.03%, respectively.
Investors might also notice recent changes to analyst estimates for ZM. These revisions help to show the ever-changing nature of near-term business trends. 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.
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. Within the past 30 days, our consensus EPS projection remained stagnant. ZM is currently a Zacks Rank #3 (Hold).
In terms of valuation, ZM is currently trading at a Forward P/E ratio of 120.8. This represents a premium compared to its industry's average Forward P/E of 79.95.
It is also worth noting that ZM currently has a PEG ratio of 4.83. 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. The Internet - Software industry currently had an average PEG ratio of 4.21 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 198, which puts it in the bottom 23% 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.
To follow ZM in the coming trading sessions, be sure to utilize Zacks.com.