VMware closed at $107.94 in the latest trading session, marking a +0.85% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.21%. Meanwhile, the Dow gained 0.19%, and the Nasdaq, a tech-heavy index, added 0.02%.
Heading into today, shares of the cloud computing company had lost 10.23% over the past month, outpacing the Computer and Technology sector's loss of 13.55% and lagging the S&P 500's loss of 8.08% in that time.
Wall Street will be looking for positivity from VMware as it approaches its next earnings report date. On that day, VMware is projected to report earnings of $1.57 per share, which would represent a year-over-year decline of 10.8%. Our most recent consensus estimate is calling for quarterly revenue of $3.19 billion, up 6.42% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.03 per share and revenue of $13.74 billion, which would represent changes of -3.03% and +6.95%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for VMware. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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.
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. VMware is holding a Zacks Rank of #4 (Sell) right now.
Investors should also note VMware's current valuation metrics, including its Forward P/E ratio of 15.22. For comparison, its industry has an average Forward P/E of 28.19, which means VMware is trading at a discount to the group.
It is also worth noting that VMW currently has a PEG ratio of 1.21. 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. Computer - Software stocks are, on average, holding a PEG ratio of 2.33 based on yesterday's closing prices.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 203, putting it in the bottom 20% 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.
To follow VMW in the coming trading sessions, be sure to utilize Zacks.com.
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VMware (VMW) Outpaces Stock Market Gains: What You Should Know
VMware closed at $107.94 in the latest trading session, marking a +0.85% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.21%. Meanwhile, the Dow gained 0.19%, and the Nasdaq, a tech-heavy index, added 0.02%.
Heading into today, shares of the cloud computing company had lost 10.23% over the past month, outpacing the Computer and Technology sector's loss of 13.55% and lagging the S&P 500's loss of 8.08% in that time.
Wall Street will be looking for positivity from VMware as it approaches its next earnings report date. On that day, VMware is projected to report earnings of $1.57 per share, which would represent a year-over-year decline of 10.8%. Our most recent consensus estimate is calling for quarterly revenue of $3.19 billion, up 6.42% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.03 per share and revenue of $13.74 billion, which would represent changes of -3.03% and +6.95%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for VMware. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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.
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. VMware is holding a Zacks Rank of #4 (Sell) right now.
Investors should also note VMware's current valuation metrics, including its Forward P/E ratio of 15.22. For comparison, its industry has an average Forward P/E of 28.19, which means VMware is trading at a discount to the group.
It is also worth noting that VMW currently has a PEG ratio of 1.21. 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. Computer - Software stocks are, on average, holding a PEG ratio of 2.33 based on yesterday's closing prices.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 203, putting it in the bottom 20% 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.
To follow VMW in the coming trading sessions, be sure to utilize Zacks.com.