We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Zoom Video Communications (ZM) Stock Sinks As Market Gains: What You Should Know
Read MoreHide Full Article
In the latest trading session, Zoom Video Communications (ZM - Free Report) closed at $393.91, marking a -1.8% move from the previous day. This move lagged the S&P 500's daily gain of 0.34%.
Coming into today, shares of the video-conferencing company had gained 17.54% in the past month. In that same time, the Computer and Technology sector gained 5.91%, while the S&P 500 gained 2.71%.
ZM will be looking to display strength as it nears its next earnings release. On that day, ZM is projected to report earnings of $1.16 per share, which would represent year-over-year growth of 26.09%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $990.32 million, up 49.25% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.66 per share and revenue of $3.99 billion, which would represent changes of +39.52% and +50.34%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for ZM. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. ZM is holding a Zacks Rank of #1 (Strong Buy) right now.
Digging into valuation, ZM currently has a Forward P/E ratio of 86.16. This valuation marks a premium compared to its industry's average Forward P/E of 61.6.
Meanwhile, ZM's PEG ratio is currently 5.51. 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 3.73 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 214, putting it in the bottom 16% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Zoom Video Communications (ZM) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Zoom Video Communications (ZM - Free Report) closed at $393.91, marking a -1.8% move from the previous day. This move lagged the S&P 500's daily gain of 0.34%.
Coming into today, shares of the video-conferencing company had gained 17.54% in the past month. In that same time, the Computer and Technology sector gained 5.91%, while the S&P 500 gained 2.71%.
ZM will be looking to display strength as it nears its next earnings release. On that day, ZM is projected to report earnings of $1.16 per share, which would represent year-over-year growth of 26.09%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $990.32 million, up 49.25% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.66 per share and revenue of $3.99 billion, which would represent changes of +39.52% and +50.34%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for ZM. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. ZM is holding a Zacks Rank of #1 (Strong Buy) right now.
Digging into valuation, ZM currently has a Forward P/E ratio of 86.16. This valuation marks a premium compared to its industry's average Forward P/E of 61.6.
Meanwhile, ZM's PEG ratio is currently 5.51. 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 3.73 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 214, putting it in the bottom 16% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.