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Zoom Video Communications (ZM) Stock Moves -0.42%: What You Should Know

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Zoom Video Communications (ZM - Free Report) closed at $253.97 in the latest trading session, marking a -0.42% move from the prior day. This change was narrower than the S&P 500's 0.69% loss on the day.

Heading into today, shares of the video-conferencing company had lost 15.41% over the past month, lagging the Computer and Technology sector's loss of 5.77% and the S&P 500's loss of 2.58% in that time.

Investors will be hoping for strength from ZM as it approaches its next earnings release. On that day, ZM is projected to report earnings of $1.09 per share, which would represent year-over-year growth of 10.1%. Our most recent consensus estimate is calling for quarterly revenue of $1.02 billion, up 31.1% from the year-ago period.

ZM's full-year Zacks Consensus Estimates are calling for earnings of $4.80 per share and revenue of $4.01 billion. These results would represent year-over-year changes of +43.71% and +51.41%, respectively.

Investors might also notice recent changes to analyst estimates for ZM. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. ZM is currently a Zacks Rank #3 (Hold).

Digging into valuation, ZM currently has a Forward P/E ratio of 53.19. Its industry sports an average Forward P/E of 63.14, so we one might conclude that ZM is trading at a discount comparatively.

Investors should also note that ZM has a PEG ratio of 2.56 right now. 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. ZM's industry had an average PEG ratio of 4.11 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 173, putting it in the bottom 32% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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