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Zoom Video Communications (ZM) Gains As Market Dips: What You Should Know
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Zoom Video Communications (ZM - Free Report) closed the most recent trading day at $142.09, moving +0.6% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.38%. Meanwhile, the Dow lost 0.5%, and the Nasdaq, a tech-heavy index, lost 0.05%.
Coming into today, shares of the video-conferencing company had lost 11.57% in the past month. In that same time, the Computer and Technology sector lost 8.71%, while the S&P 500 lost 6.25%.
Zoom Video Communications will be looking to display strength as it nears its next earnings release, which is expected to be February 28, 2022. In that report, analysts expect Zoom Video Communications to post earnings of $1.07 per share. This would mark a year-over-year decline of 12.3%. Our most recent consensus estimate is calling for quarterly revenue of $1.05 billion, up 19.25% from the year-ago period.
Investors should also note any recent changes to analyst estimates for Zoom Video Communications. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Zoom Video Communications currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Zoom Video Communications is holding a Forward P/E ratio of 32.43. This represents a discount compared to its industry's average Forward P/E of 52.41.
Meanwhile, ZM's PEG ratio is currently 1.67. 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 2.96 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 158, which puts it in the bottom 39% 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) Gains As Market Dips: What You Should Know
Zoom Video Communications (ZM - Free Report) closed the most recent trading day at $142.09, moving +0.6% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.38%. Meanwhile, the Dow lost 0.5%, and the Nasdaq, a tech-heavy index, lost 0.05%.
Coming into today, shares of the video-conferencing company had lost 11.57% in the past month. In that same time, the Computer and Technology sector lost 8.71%, while the S&P 500 lost 6.25%.
Zoom Video Communications will be looking to display strength as it nears its next earnings release, which is expected to be February 28, 2022. In that report, analysts expect Zoom Video Communications to post earnings of $1.07 per share. This would mark a year-over-year decline of 12.3%. Our most recent consensus estimate is calling for quarterly revenue of $1.05 billion, up 19.25% from the year-ago period.
Investors should also note any recent changes to analyst estimates for Zoom Video Communications. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Zoom Video Communications currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Zoom Video Communications is holding a Forward P/E ratio of 32.43. This represents a discount compared to its industry's average Forward P/E of 52.41.
Meanwhile, ZM's PEG ratio is currently 1.67. 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 2.96 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 158, which puts it in the bottom 39% 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.