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Zoom Video Communications (ZM) Gains As Market Dips: What You Should Know
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Zoom Video Communications (ZM - Free Report) closed the most recent trading day at $431, moving +0.23% from the previous trading session. This change outpaced the S&P 500's 0.04% loss on the day. Meanwhile, the Dow gained 0.2%, and the Nasdaq, a tech-heavy index, lost 0.25%.
Prior to today's trading, shares of the video-conferencing company had gained 21.65% over the past month. This has outpaced the Computer and Technology sector's gain of 7.76% and the S&P 500's gain of 2.37% in that time.
Wall Street will be looking for positivity from ZM as it approaches its next earnings report date. This is expected to be March 1, 2021. On that day, ZM is projected to report earnings of $0.78 per share, which would represent year-over-year growth of 420%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $809.07 million, up 329.78% from the year-ago period.
It is also important to note the 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 #1 (Strong Buy).
Looking at its valuation, ZM is holding a Forward P/E ratio of 139.3. For comparison, its industry has an average Forward P/E of 93.73, which means ZM is trading at a premium to the group.
We can also see that ZM currently has a PEG ratio of 5.57. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Software industry currently had an average PEG ratio of 4.78 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 188, putting it in the bottom 27% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Zoom Video Communications (ZM) Gains As Market Dips: What You Should Know
Zoom Video Communications (ZM - Free Report) closed the most recent trading day at $431, moving +0.23% from the previous trading session. This change outpaced the S&P 500's 0.04% loss on the day. Meanwhile, the Dow gained 0.2%, and the Nasdaq, a tech-heavy index, lost 0.25%.
Prior to today's trading, shares of the video-conferencing company had gained 21.65% over the past month. This has outpaced the Computer and Technology sector's gain of 7.76% and the S&P 500's gain of 2.37% in that time.
Wall Street will be looking for positivity from ZM as it approaches its next earnings report date. This is expected to be March 1, 2021. On that day, ZM is projected to report earnings of $0.78 per share, which would represent year-over-year growth of 420%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $809.07 million, up 329.78% from the year-ago period.
It is also important to note the 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 #1 (Strong Buy).
Looking at its valuation, ZM is holding a Forward P/E ratio of 139.3. For comparison, its industry has an average Forward P/E of 93.73, which means ZM is trading at a premium to the group.
We can also see that ZM currently has a PEG ratio of 5.57. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Software industry currently had an average PEG ratio of 4.78 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 188, putting it in the bottom 27% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.