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Zoom Video Communications (ZM) Stock Moves -0.19%: What You Should Know
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Zoom Video Communications (ZM - Free Report) closed the most recent trading day at $378.39, moving -0.19% from the previous trading session. This change was narrower than the S&P 500's 0.35% loss on the day.
Heading into today, shares of the video-conferencing company had gained 3.61% over the past month, lagging the Computer and Technology sector's gain of 4.23% and outpacing the S&P 500's gain of 3.36% 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 $1.16 per share. This would mark 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.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.66 per share and revenue of $3.99 billion. These totals would mark changes of +39.52% and +50.34%, respectively, from last 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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.
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. Within the past 30 days, our consensus EPS projection remained stagnant. ZM is currently sporting a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that ZM has a Forward P/E ratio of 81.43 right now. For comparison, its industry has an average Forward P/E of 68.76, which means ZM is trading at a premium to the group.
Also, we should mention that ZM has a PEG ratio of 5.21. 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 was holding an average PEG ratio of 3.55 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 200, putting it in the bottom 22% 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.
To follow ZM in the coming trading sessions, be sure to utilize Zacks.com.
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Zoom Video Communications (ZM) Stock Moves -0.19%: What You Should Know
Zoom Video Communications (ZM - Free Report) closed the most recent trading day at $378.39, moving -0.19% from the previous trading session. This change was narrower than the S&P 500's 0.35% loss on the day.
Heading into today, shares of the video-conferencing company had gained 3.61% over the past month, lagging the Computer and Technology sector's gain of 4.23% and outpacing the S&P 500's gain of 3.36% 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 $1.16 per share. This would mark 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.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.66 per share and revenue of $3.99 billion. These totals would mark changes of +39.52% and +50.34%, respectively, from last 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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.
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. Within the past 30 days, our consensus EPS projection remained stagnant. ZM is currently sporting a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that ZM has a Forward P/E ratio of 81.43 right now. For comparison, its industry has an average Forward P/E of 68.76, which means ZM is trading at a premium to the group.
Also, we should mention that ZM has a PEG ratio of 5.21. 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 was holding an average PEG ratio of 3.55 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 200, putting it in the bottom 22% 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.
To follow ZM in the coming trading sessions, be sure to utilize Zacks.com.