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Zoom Video Communications (ZM) Stock Falls Amid Market Uptick: What Investors Need to Know
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Zoom Video Communications (ZM - Free Report) closed the most recent trading day at $68.18, moving -0.19% from the previous trading session. The stock's change was less than the S&P 500's daily gain of 0.57%. Meanwhile, the Dow gained 0.46%, and the Nasdaq, a tech-heavy index, added 0.75%.
The video-conferencing company's shares have seen a decrease of 4.17% over the last month, not keeping up with the Computer and Technology sector's gain of 1.51% and the S&P 500's gain of 3.4%.
Investors will be eagerly watching for the performance of Zoom Video Communications in its upcoming earnings disclosure. On that day, Zoom Video Communications is projected to report earnings of $1.15 per share, which would represent a year-over-year decline of 5.74%. At the same time, our most recent consensus estimate is projecting a revenue of $1.13 billion, reflecting a 0.97% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $4.94 per share and revenue of $4.51 billion, which would represent changes of +13.04% and +2.6%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Zoom Video Communications. 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 suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Zoom Video Communications presently features a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that Zoom Video Communications has a Forward P/E ratio of 13.83 right now. This signifies a discount in comparison to the average Forward P/E of 34.02 for its industry.
It is also worth noting that ZM currently has a PEG ratio of 0.41. 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. The average PEG ratio for the Internet - Software industry stood at 1.65 at the close of the market yesterday.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 29, which puts it in the top 12% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Zoom Video Communications (ZM) Stock Falls Amid Market Uptick: What Investors Need to Know
Zoom Video Communications (ZM - Free Report) closed the most recent trading day at $68.18, moving -0.19% from the previous trading session. The stock's change was less than the S&P 500's daily gain of 0.57%. Meanwhile, the Dow gained 0.46%, and the Nasdaq, a tech-heavy index, added 0.75%.
The video-conferencing company's shares have seen a decrease of 4.17% over the last month, not keeping up with the Computer and Technology sector's gain of 1.51% and the S&P 500's gain of 3.4%.
Investors will be eagerly watching for the performance of Zoom Video Communications in its upcoming earnings disclosure. On that day, Zoom Video Communications is projected to report earnings of $1.15 per share, which would represent a year-over-year decline of 5.74%. At the same time, our most recent consensus estimate is projecting a revenue of $1.13 billion, reflecting a 0.97% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $4.94 per share and revenue of $4.51 billion, which would represent changes of +13.04% and +2.6%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Zoom Video Communications. 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 suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Zoom Video Communications presently features a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that Zoom Video Communications has a Forward P/E ratio of 13.83 right now. This signifies a discount in comparison to the average Forward P/E of 34.02 for its industry.
It is also worth noting that ZM currently has a PEG ratio of 0.41. 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. The average PEG ratio for the Internet - Software industry stood at 1.65 at the close of the market yesterday.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 29, which puts it in the top 12% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.