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) Flat As Market Gains: What You Should Know
Read MoreHide Full Article
Zoom Video Communications (ZM - Free Report) closed the most recent trading day at $69.74, making no change from the previous trading session. This change lagged the S&P 500's 0.74% gain on the day. Elsewhere, the Dow gained 0.25%, while the tech-heavy Nasdaq added 11.47%.
Coming into today, shares of the video-conferencing company had gained 1.34% in the past month. In that same time, the Computer and Technology sector gained 2.44%, while the S&P 500 gained 3.34%.
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 $1.05 per share, which would represent no growth from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.11 billion, up 1.25% from the prior-year quarter.
ZM's full-year Zacks Consensus Estimates are calling for earnings of $4.28 per share and revenue of $4.48 billion. These results would represent year-over-year changes of -2.06% and +1.88%, respectively.
Any recent changes to analyst estimates for Zoom Video Communications should also be noted by investors. Recent revisions tend to reflect the latest 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. 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. Within the past 30 days, our consensus EPS projection remained stagnant. Zoom Video Communications is currently a Zacks Rank #3 (Hold).
Digging into valuation, Zoom Video Communications currently has a Forward P/E ratio of 16.29. For comparison, its industry has an average Forward P/E of 43.12, which means Zoom Video Communications is trading at a discount to the group.
We can also see that ZM currently has a PEG ratio of 0.65. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ZM's industry had an average PEG ratio of 1.76 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 64, which puts it in the top 26% 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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Zoom Video Communications (ZM) Flat As Market Gains: What You Should Know
Zoom Video Communications (ZM - Free Report) closed the most recent trading day at $69.74, making no change from the previous trading session. This change lagged the S&P 500's 0.74% gain on the day. Elsewhere, the Dow gained 0.25%, while the tech-heavy Nasdaq added 11.47%.
Coming into today, shares of the video-conferencing company had gained 1.34% in the past month. In that same time, the Computer and Technology sector gained 2.44%, while the S&P 500 gained 3.34%.
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 $1.05 per share, which would represent no growth from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.11 billion, up 1.25% from the prior-year quarter.
ZM's full-year Zacks Consensus Estimates are calling for earnings of $4.28 per share and revenue of $4.48 billion. These results would represent year-over-year changes of -2.06% and +1.88%, respectively.
Any recent changes to analyst estimates for Zoom Video Communications should also be noted by investors. Recent revisions tend to reflect the latest 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. 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. Within the past 30 days, our consensus EPS projection remained stagnant. Zoom Video Communications is currently a Zacks Rank #3 (Hold).
Digging into valuation, Zoom Video Communications currently has a Forward P/E ratio of 16.29. For comparison, its industry has an average Forward P/E of 43.12, which means Zoom Video Communications is trading at a discount to the group.
We can also see that ZM currently has a PEG ratio of 0.65. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ZM's industry had an average PEG ratio of 1.76 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 64, which puts it in the top 26% 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.