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) Stock Sinks As Market Gains: What You Should Know
Read MoreHide Full Article
Zoom Video Communications (ZM - Free Report) closed at $73.67 in the latest trading session, marking a -0.23% move from the prior day. This change lagged the S&P 500's 0.37% gain on the day. Meanwhile, the Dow gained 0.98%, and the Nasdaq, a tech-heavy index, added 0.62%.
Prior to today's trading, shares of the video-conferencing company had gained 4.28% over the past month. This has lagged the Computer and Technology sector's gain of 10.71% and outpaced the S&P 500's gain of 3.71% in that time.
Zoom Video Communications will be looking to display strength as it nears its next earnings release. On that day, Zoom Video Communications is projected to report earnings of $0.99 per share, which would represent a year-over-year decline of 3.88%. Meanwhile, our latest consensus estimate is calling for revenue of $1.08 billion, up 0.91% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.20 per share and revenue of $4.44 billion. These totals would mark changes of -3.89% and +1.18%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Zoom Video Communications. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. Over the past month, the Zacks Consensus EPS estimate has moved 9.94% higher. Zoom Video Communications currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Zoom Video Communications currently has a Forward P/E ratio of 17.6. Its industry sports an average Forward P/E of 43.25, 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 0.7. 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. ZM's industry had an average PEG ratio of 1.74 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 51, putting it in the top 21% 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.
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) Stock Sinks As Market Gains: What You Should Know
Zoom Video Communications (ZM - Free Report) closed at $73.67 in the latest trading session, marking a -0.23% move from the prior day. This change lagged the S&P 500's 0.37% gain on the day. Meanwhile, the Dow gained 0.98%, and the Nasdaq, a tech-heavy index, added 0.62%.
Prior to today's trading, shares of the video-conferencing company had gained 4.28% over the past month. This has lagged the Computer and Technology sector's gain of 10.71% and outpaced the S&P 500's gain of 3.71% in that time.
Zoom Video Communications will be looking to display strength as it nears its next earnings release. On that day, Zoom Video Communications is projected to report earnings of $0.99 per share, which would represent a year-over-year decline of 3.88%. Meanwhile, our latest consensus estimate is calling for revenue of $1.08 billion, up 0.91% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.20 per share and revenue of $4.44 billion. These totals would mark changes of -3.89% and +1.18%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Zoom Video Communications. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. Over the past month, the Zacks Consensus EPS estimate has moved 9.94% higher. Zoom Video Communications currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Zoom Video Communications currently has a Forward P/E ratio of 17.6. Its industry sports an average Forward P/E of 43.25, 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 0.7. 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. ZM's industry had an average PEG ratio of 1.74 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 51, putting it in the top 21% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.