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Zuora (ZUO) Rises Higher Than Market: Key Facts

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Zuora (ZUO - Free Report) closed the latest trading day at $8.47, indicating a +1.19% change from the previous session's end. This move outpaced the S&P 500's daily gain of 0.03%. On the other hand, the Dow registered a gain of 0.41%, and the technology-centric Nasdaq increased by 0.12%.

Heading into today, shares of the enterprise software company had lost 7.72% over the past month, lagging the Computer and Technology sector's loss of 0.55% and the S&P 500's loss of 0.9% in that time.

The investment community will be closely monitoring the performance of Zuora in its forthcoming earnings report. The company's upcoming EPS is projected at $0.07, signifying a 40% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $108.8 million, showing a 5.53% escalation compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates project earnings of $0.41 per share and a revenue of $455 million, demonstrating changes of +24.24% and +5.41%, respectively, from the preceding year.

Investors should also take note of any recent adjustments to analyst estimates for Zuora. 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Zuora is currently sporting a Zacks Rank of #1 (Strong Buy).

Digging into valuation, Zuora currently has a Forward P/E ratio of 20.42. Its industry sports an average Forward P/E of 27.33, so one might conclude that Zuora is trading at a discount comparatively.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 47, putting it in the top 19% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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