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Zoom Video Communications (ZM) Outpaces Stock Market Gains: What You Should Know
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In the latest trading session, Zoom Video Communications (ZM - Free Report) closed at $278.94, marking a +1.56% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.18%.
Prior to today's trading, shares of the video-conferencing company had gained 2.67% over the past month. This has lagged the Computer and Technology sector's gain of 5.57% and the S&P 500's gain of 5.68% in that time.
Wall Street will be looking for positivity from ZM as it approaches its next earnings report date. In that report, analysts expect ZM to post earnings of $1.09 per share. This would mark year-over-year growth of 10.1%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.02 billion, up 31.1% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.80 per share and revenue of $4.01 billion. These totals would mark changes of +43.71% and +51.41%, 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. 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. 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, 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 a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that ZM has a Forward P/E ratio of 57.28 right now. Its industry sports an average Forward P/E of 78.51, so we one might conclude that ZM is trading at a discount comparatively.
It is also worth noting that ZM currently has a PEG ratio of 2.75. 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. Internet - Software stocks are, on average, holding a PEG ratio of 4.39 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 169, which puts it in the bottom 34% 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 (ZM) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Zoom Video Communications (ZM - Free Report) closed at $278.94, marking a +1.56% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.18%.
Prior to today's trading, shares of the video-conferencing company had gained 2.67% over the past month. This has lagged the Computer and Technology sector's gain of 5.57% and the S&P 500's gain of 5.68% in that time.
Wall Street will be looking for positivity from ZM as it approaches its next earnings report date. In that report, analysts expect ZM to post earnings of $1.09 per share. This would mark year-over-year growth of 10.1%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.02 billion, up 31.1% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.80 per share and revenue of $4.01 billion. These totals would mark changes of +43.71% and +51.41%, 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. 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. 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, 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 a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that ZM has a Forward P/E ratio of 57.28 right now. Its industry sports an average Forward P/E of 78.51, so we one might conclude that ZM is trading at a discount comparatively.
It is also worth noting that ZM currently has a PEG ratio of 2.75. 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. Internet - Software stocks are, on average, holding a PEG ratio of 4.39 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 169, which puts it in the bottom 34% 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.