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Here's Why Zoom Video Communications (ZM) Gained But Lagged the Market Today
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Zoom Video Communications (ZM - Free Report) closed the latest trading day at $64.14, indicating a +0.75% change from the previous session's end. This move lagged the S&P 500's daily gain of 0.96%. At the same time, the Dow added 0.4%, and the tech-heavy Nasdaq gained 1.3%.
Prior to today's trading, shares of the video-conferencing company had lost 7.87% over the past month. This has lagged the Computer and Technology sector's gain of 6.92% and the S&P 500's gain of 3.69% in that time.
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 is predicted to post an EPS of $1.15, indicating a 5.74% decline compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.13 billion, up 0.98% from the year-ago period.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Zoom Video Communications. These recent revisions tend to reflect the evolving nature of short-term business trends. 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 take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Zoom Video Communications is currently sporting a Zacks Rank of #3 (Hold).
In the context of valuation, Zoom Video Communications is at present trading with a Forward P/E ratio of 13.73. Its industry sports an average Forward P/E of 31.64, so one might conclude that Zoom Video Communications is trading at a discount comparatively.
It's also important to note that ZM currently trades at a PEG ratio of 0.41. 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. Internet - Software stocks are, on average, holding a PEG ratio of 1.72 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 79, finds itself in the top 32% echelons 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Here's Why Zoom Video Communications (ZM) Gained But Lagged the Market Today
Zoom Video Communications (ZM - Free Report) closed the latest trading day at $64.14, indicating a +0.75% change from the previous session's end. This move lagged the S&P 500's daily gain of 0.96%. At the same time, the Dow added 0.4%, and the tech-heavy Nasdaq gained 1.3%.
Prior to today's trading, shares of the video-conferencing company had lost 7.87% over the past month. This has lagged the Computer and Technology sector's gain of 6.92% and the S&P 500's gain of 3.69% in that time.
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 is predicted to post an EPS of $1.15, indicating a 5.74% decline compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.13 billion, up 0.98% from the year-ago period.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Zoom Video Communications. These recent revisions tend to reflect the evolving nature of short-term business trends. 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 take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Zoom Video Communications is currently sporting a Zacks Rank of #3 (Hold).
In the context of valuation, Zoom Video Communications is at present trading with a Forward P/E ratio of 13.73. Its industry sports an average Forward P/E of 31.64, so one might conclude that Zoom Video Communications is trading at a discount comparatively.
It's also important to note that ZM currently trades at a PEG ratio of 0.41. 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. Internet - Software stocks are, on average, holding a PEG ratio of 1.72 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 79, finds itself in the top 32% echelons 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.