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Zoom Video Communications (ZM) Stock Sinks As Market Gains: What You Should Know
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Zoom Video Communications (ZM - Free Report) closed the most recent trading day at $61.29, moving -0.23% from the previous trading session. This change lagged the S&P 500's daily gain of 1.96%. Meanwhile, the Dow gained 1.57%, and the Nasdaq, a tech-heavy index, lost 3.03%.
Prior to today's trading, shares of the video-conferencing company had lost 12.99% over the past month. This has lagged the Computer and Technology sector's loss of 0.91% and the S&P 500's gain of 2.19% in that time.
Zoom Video Communications will be looking to display strength as it nears its next earnings release. In that report, analysts expect Zoom Video Communications to post earnings of $0.99 per share. This would mark a year-over-year decline of 3.88%. Our most recent consensus estimate is calling for quarterly revenue of $1.08 billion, up 0.91% from the year-ago period.
ZM's full-year Zacks Consensus Estimates are calling for earnings of $4.20 per share and revenue of $4.44 billion. These results would represent year-over-year changes of -3.89% and +1.18%, respectively.
Investors should also note any recent changes to analyst estimates for Zoom Video Communications. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. 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 14.64. This valuation marks a discount compared to its industry's average Forward P/E of 39.49.
Meanwhile, ZM's PEG ratio is currently 0.59. 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. ZM's industry had an average PEG ratio of 1.64 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 62, which puts it in the top 25% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Zoom Video Communications (ZM) Stock Sinks As Market Gains: What You Should Know
Zoom Video Communications (ZM - Free Report) closed the most recent trading day at $61.29, moving -0.23% from the previous trading session. This change lagged the S&P 500's daily gain of 1.96%. Meanwhile, the Dow gained 1.57%, and the Nasdaq, a tech-heavy index, lost 3.03%.
Prior to today's trading, shares of the video-conferencing company had lost 12.99% over the past month. This has lagged the Computer and Technology sector's loss of 0.91% and the S&P 500's gain of 2.19% in that time.
Zoom Video Communications will be looking to display strength as it nears its next earnings release. In that report, analysts expect Zoom Video Communications to post earnings of $0.99 per share. This would mark a year-over-year decline of 3.88%. Our most recent consensus estimate is calling for quarterly revenue of $1.08 billion, up 0.91% from the year-ago period.
ZM's full-year Zacks Consensus Estimates are calling for earnings of $4.20 per share and revenue of $4.44 billion. These results would represent year-over-year changes of -3.89% and +1.18%, respectively.
Investors should also note any recent changes to analyst estimates for Zoom Video Communications. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. 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 14.64. This valuation marks a discount compared to its industry's average Forward P/E of 39.49.
Meanwhile, ZM's PEG ratio is currently 0.59. 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. ZM's industry had an average PEG ratio of 1.64 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 62, which puts it in the top 25% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.