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Zoom Communications (ZM) Gains But Lags Market: What You Should Know
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Zoom Communications (ZM - Free Report) closed at $82.67 in the latest trading session, marking a +1.67% move from the prior day. This change lagged the S&P 500's 3.26% gain on the day. Meanwhile, the Dow gained 2.81%, and the Nasdaq, a tech-heavy index, added 4.35%.
Prior to today's trading, shares of the video-conferencing company had gained 13.98% over the past month. This has outpaced the Computer and Technology sector's gain of 4.76% and the S&P 500's gain of 3.78% in that time.
Investors will be eagerly watching for the performance of Zoom Communications in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on May 21, 2025. It is anticipated that the company will report an EPS of $1.30, marking a 3.7% fall compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $1.16 billion, up 2.03% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $5.36 per share and revenue of $4.78 billion, which would represent changes of -3.25% and +2.35%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Zoom Communications. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.46% downward. Zoom Communications is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Zoom Communications currently has a Forward P/E ratio of 15.17. For comparison, its industry has an average Forward P/E of 28.5, which means Zoom Communications is trading at a discount to the group.
It is also worth noting that ZM currently has a PEG ratio of 9.6. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Internet - Software industry had an average PEG ratio of 2.23 as trading concluded yesterday.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 94, which puts it in the top 39% 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Zoom Communications (ZM) Gains But Lags Market: What You Should Know
Zoom Communications (ZM - Free Report) closed at $82.67 in the latest trading session, marking a +1.67% move from the prior day. This change lagged the S&P 500's 3.26% gain on the day. Meanwhile, the Dow gained 2.81%, and the Nasdaq, a tech-heavy index, added 4.35%.
Prior to today's trading, shares of the video-conferencing company had gained 13.98% over the past month. This has outpaced the Computer and Technology sector's gain of 4.76% and the S&P 500's gain of 3.78% in that time.
Investors will be eagerly watching for the performance of Zoom Communications in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on May 21, 2025. It is anticipated that the company will report an EPS of $1.30, marking a 3.7% fall compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $1.16 billion, up 2.03% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $5.36 per share and revenue of $4.78 billion, which would represent changes of -3.25% and +2.35%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Zoom Communications. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.46% downward. Zoom Communications is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Zoom Communications currently has a Forward P/E ratio of 15.17. For comparison, its industry has an average Forward P/E of 28.5, which means Zoom Communications is trading at a discount to the group.
It is also worth noting that ZM currently has a PEG ratio of 9.6. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Internet - Software industry had an average PEG ratio of 2.23 as trading concluded yesterday.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 94, which puts it in the top 39% 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.