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Why Zoom Video Communications (ZM) Outpaced the Stock Market Today
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The latest trading session saw Zoom Video Communications (ZM - Free Report) ending at $68.93, denoting a +1.76% adjustment from its last day's close. This change outpaced the S&P 500's 0.76% gain on the day. At the same time, the Dow added 0.59%, and the tech-heavy Nasdaq gained 1.12%.
Heading into today, shares of the video-conferencing company had lost 5.8% over the past month, lagging the Computer and Technology sector's gain of 4.99% and the S&P 500's gain of 2.5% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Zoom Video Communications in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $1.15, reflecting a 5.74% decrease from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $1.13 billion, up 0.97% from the prior-year quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $4.94 per share and a revenue of $4.51 billion, representing changes of +13.04% and +2.6%, respectively, from the prior year.
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 reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 remained stagnant. As of now, Zoom Video Communications holds a Zacks Rank of #1 (Strong Buy).
In terms of valuation, Zoom Video Communications is currently trading at a Forward P/E ratio of 13.72. Its industry sports an average Forward P/E of 35.19, so one might conclude that Zoom Video Communications is trading at a discount comparatively.
Investors should also note that ZM has a PEG ratio of 0.41 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Internet - Software industry currently 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. Currently, this industry holds a Zacks Industry Rank of 59, positioning it in the top 24% 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Why Zoom Video Communications (ZM) Outpaced the Stock Market Today
The latest trading session saw Zoom Video Communications (ZM - Free Report) ending at $68.93, denoting a +1.76% adjustment from its last day's close. This change outpaced the S&P 500's 0.76% gain on the day. At the same time, the Dow added 0.59%, and the tech-heavy Nasdaq gained 1.12%.
Heading into today, shares of the video-conferencing company had lost 5.8% over the past month, lagging the Computer and Technology sector's gain of 4.99% and the S&P 500's gain of 2.5% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Zoom Video Communications in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $1.15, reflecting a 5.74% decrease from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $1.13 billion, up 0.97% from the prior-year quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $4.94 per share and a revenue of $4.51 billion, representing changes of +13.04% and +2.6%, respectively, from the prior year.
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 reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 remained stagnant. As of now, Zoom Video Communications holds a Zacks Rank of #1 (Strong Buy).
In terms of valuation, Zoom Video Communications is currently trading at a Forward P/E ratio of 13.72. Its industry sports an average Forward P/E of 35.19, so one might conclude that Zoom Video Communications is trading at a discount comparatively.
Investors should also note that ZM has a PEG ratio of 0.41 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Internet - Software industry currently 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. Currently, this industry holds a Zacks Industry Rank of 59, positioning it in the top 24% 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.