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Zoom Video Communications (ZM) Dips More Than Broader Markets: What You Should Know
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Zoom Video Communications (ZM - Free Report) closed at $66.84 in the latest trading session, marking a -0.96% move from the prior day. This change lagged the S&P 500's daily loss of 0.76%. At the same time, the Dow lost 0.76%, and the tech-heavy Nasdaq lost 10.92%.
Coming into today, shares of the video-conferencing company had lost 3.5% in the past month. In that same time, the Computer and Technology sector gained 2.92%, while the S&P 500 gained 2.18%.
Wall Street will be looking for positivity from Zoom Video Communications as it approaches its next earnings report date. On that day, Zoom Video Communications is projected to report earnings of $0.79 per share, which would represent a year-over-year decline of 38.76%. Meanwhile, our latest consensus estimate is calling for revenue of $1.1 billion, up 2.67% from the prior-year quarter.
ZM's full-year Zacks Consensus Estimates are calling for earnings of $3.95 per share and revenue of $4.38 billion. These results would represent year-over-year changes of -22.09% and +6.71%, respectively.
Any recent changes to analyst estimates for Zoom Video Communications should also be noted by investors. These revisions help to show the ever-changing nature of 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Within the past 30 days, our consensus EPS projection has moved 0.34% lower. 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 17.09. This valuation marks a discount compared to its industry's average Forward P/E of 40.64.
It is also worth noting that ZM currently has a PEG ratio of 0.88. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Software industry currently had an average PEG ratio of 2.08 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 51, which puts it in the top 21% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Zoom Video Communications (ZM) Dips More Than Broader Markets: What You Should Know
Zoom Video Communications (ZM - Free Report) closed at $66.84 in the latest trading session, marking a -0.96% move from the prior day. This change lagged the S&P 500's daily loss of 0.76%. At the same time, the Dow lost 0.76%, and the tech-heavy Nasdaq lost 10.92%.
Coming into today, shares of the video-conferencing company had lost 3.5% in the past month. In that same time, the Computer and Technology sector gained 2.92%, while the S&P 500 gained 2.18%.
Wall Street will be looking for positivity from Zoom Video Communications as it approaches its next earnings report date. On that day, Zoom Video Communications is projected to report earnings of $0.79 per share, which would represent a year-over-year decline of 38.76%. Meanwhile, our latest consensus estimate is calling for revenue of $1.1 billion, up 2.67% from the prior-year quarter.
ZM's full-year Zacks Consensus Estimates are calling for earnings of $3.95 per share and revenue of $4.38 billion. These results would represent year-over-year changes of -22.09% and +6.71%, respectively.
Any recent changes to analyst estimates for Zoom Video Communications should also be noted by investors. These revisions help to show the ever-changing nature of 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Within the past 30 days, our consensus EPS projection has moved 0.34% lower. 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 17.09. This valuation marks a discount compared to its industry's average Forward P/E of 40.64.
It is also worth noting that ZM currently has a PEG ratio of 0.88. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Software industry currently had an average PEG ratio of 2.08 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 51, which puts it in the top 21% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.