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Zoom Video Communications (ZM) Increases Yet Falls Behind Market: What Investors Need to Know
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Zoom Video Communications (ZM - Free Report) closed the latest trading day at $63.90, indicating a +0.03% change from the previous session's end. The stock trailed the S&P 500, which registered a daily gain of 0.06%. Meanwhile, the Dow experienced a rise of 0.13%, and the technology-dominated Nasdaq saw an increase of 0.24%.
Coming into today, shares of the video-conferencing company had lost 6.31% in the past month. In that same time, the Computer and Technology sector gained 12.39%, while the S&P 500 gained 6.45%.
The upcoming earnings release of Zoom Video Communications will be of great interest to investors. The company's earnings report is expected on February 26, 2024. The company's upcoming EPS is projected at $1.15, signifying a 5.74% drop compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $1.13 billion, indicating a 0.98% growth compared to the corresponding quarter of the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Zoom Video Communications. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 last 30 days, the Zacks Consensus EPS estimate has remained unchanged. At present, Zoom Video Communications boasts a Zacks Rank of #3 (Hold).
In terms of valuation, Zoom Video Communications is currently trading at a Forward P/E ratio of 13.78. This represents a discount compared to its industry's average Forward P/E of 31.53.
We can additionally observe that ZM currently boasts a PEG ratio of 0.41. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Internet - Software stocks are, on average, holding a PEG ratio of 1.69 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 92, this industry ranks in the top 37% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Zoom Video Communications (ZM) Increases Yet Falls Behind Market: What Investors Need to Know
Zoom Video Communications (ZM - Free Report) closed the latest trading day at $63.90, indicating a +0.03% change from the previous session's end. The stock trailed the S&P 500, which registered a daily gain of 0.06%. Meanwhile, the Dow experienced a rise of 0.13%, and the technology-dominated Nasdaq saw an increase of 0.24%.
Coming into today, shares of the video-conferencing company had lost 6.31% in the past month. In that same time, the Computer and Technology sector gained 12.39%, while the S&P 500 gained 6.45%.
The upcoming earnings release of Zoom Video Communications will be of great interest to investors. The company's earnings report is expected on February 26, 2024. The company's upcoming EPS is projected at $1.15, signifying a 5.74% drop compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $1.13 billion, indicating a 0.98% growth compared to the corresponding quarter of the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Zoom Video Communications. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 last 30 days, the Zacks Consensus EPS estimate has remained unchanged. At present, Zoom Video Communications boasts a Zacks Rank of #3 (Hold).
In terms of valuation, Zoom Video Communications is currently trading at a Forward P/E ratio of 13.78. This represents a discount compared to its industry's average Forward P/E of 31.53.
We can additionally observe that ZM currently boasts a PEG ratio of 0.41. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Internet - Software stocks are, on average, holding a PEG ratio of 1.69 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 92, this industry ranks in the top 37% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.