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) Outpaces Stock Market Gains: What You Should Know
Read MoreHide Full Article
In the latest trading session, Zoom Video Communications (ZM - Free Report) closed at $175.97, marking a +1.98% move from the previous day. This change outpaced the S&P 500's 0.92% gain on the day. At the same time, the Dow added 0.51%, and the tech-heavy Nasdaq gained 0.54%.
Heading into today, shares of the video-conferencing company had lost 6.51% over the past month, lagging the Computer and Technology sector's loss of 5.93% and the S&P 500's loss of 0.85% in that time.
Zoom Video Communications will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.07, down 12.3% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.05 billion, up 19.25% from the year-ago period.
ZM's full-year Zacks Consensus Estimates are calling for earnings of $4.85 per share and revenue of $4.08 billion. These results would represent year-over-year changes of +45.21% and +53.91%, respectively.
Investors might also notice recent changes to analyst estimates for Zoom Video Communications. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Zoom Video Communications currently has a Zacks Rank of #3 (Hold).
Investors should also note Zoom Video Communications's current valuation metrics, including its Forward P/E ratio of 35.59. Its industry sports an average Forward P/E of 56.76, so we one might conclude that Zoom Video Communications is trading at a discount comparatively.
It is also worth noting that ZM currently has a PEG ratio of 1.83. 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. The Internet - Software industry currently had an average PEG ratio of 3.01 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 177, which puts it in the bottom 31% 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.
You can find more information on all of these metrics, and much 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) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Zoom Video Communications (ZM - Free Report) closed at $175.97, marking a +1.98% move from the previous day. This change outpaced the S&P 500's 0.92% gain on the day. At the same time, the Dow added 0.51%, and the tech-heavy Nasdaq gained 0.54%.
Heading into today, shares of the video-conferencing company had lost 6.51% over the past month, lagging the Computer and Technology sector's loss of 5.93% and the S&P 500's loss of 0.85% in that time.
Zoom Video Communications will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.07, down 12.3% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.05 billion, up 19.25% from the year-ago period.
ZM's full-year Zacks Consensus Estimates are calling for earnings of $4.85 per share and revenue of $4.08 billion. These results would represent year-over-year changes of +45.21% and +53.91%, respectively.
Investors might also notice recent changes to analyst estimates for Zoom Video Communications. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Zoom Video Communications currently has a Zacks Rank of #3 (Hold).
Investors should also note Zoom Video Communications's current valuation metrics, including its Forward P/E ratio of 35.59. Its industry sports an average Forward P/E of 56.76, so we one might conclude that Zoom Video Communications is trading at a discount comparatively.
It is also worth noting that ZM currently has a PEG ratio of 1.83. 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. The Internet - Software industry currently had an average PEG ratio of 3.01 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 177, which puts it in the bottom 31% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.