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Why Zoom Communications (ZM) Outpaced the Stock Market Today
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Zoom Communications (ZM - Free Report) closed the most recent trading day at $78.38, moving +1.85% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.52%. Meanwhile, the Dow gained 1%, and the Nasdaq, a tech-heavy index, added 0.52%.
Coming into today, shares of the video-conferencing company had lost 3.73% in the past month. In that same time, the Computer and Technology sector gained 9.55%, while the S&P 500 gained 5.95%.
The investment community will be closely monitoring the performance of Zoom Communications in its forthcoming earnings report. The company is forecasted to report an EPS of $1.37, showcasing a 1.44% downward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $1.2 billion, indicating a 3.02% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $5.59 per share and revenue of $4.81 billion. These totals would mark changes of +0.9% and +2.99%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Zoom Communications. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. The Zacks Consensus EPS estimate has moved 0.99% higher within the past month. Currently, Zoom Communications is carrying a Zacks Rank of #2 (Buy).
Digging into valuation, Zoom Communications currently has a Forward P/E ratio of 13.78. This represents a discount compared to its industry average Forward P/E of 28.26.
Meanwhile, ZM's PEG ratio is currently 7.39. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The average PEG ratio for the Internet - Software industry stood at 2.23 at the close of the market yesterday.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 48, this industry ranks in the top 20% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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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Why Zoom Communications (ZM) Outpaced the Stock Market Today
Zoom Communications (ZM - Free Report) closed the most recent trading day at $78.38, moving +1.85% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.52%. Meanwhile, the Dow gained 1%, and the Nasdaq, a tech-heavy index, added 0.52%.
Coming into today, shares of the video-conferencing company had lost 3.73% in the past month. In that same time, the Computer and Technology sector gained 9.55%, while the S&P 500 gained 5.95%.
The investment community will be closely monitoring the performance of Zoom Communications in its forthcoming earnings report. The company is forecasted to report an EPS of $1.37, showcasing a 1.44% downward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $1.2 billion, indicating a 3.02% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $5.59 per share and revenue of $4.81 billion. These totals would mark changes of +0.9% and +2.99%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Zoom Communications. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. The Zacks Consensus EPS estimate has moved 0.99% higher within the past month. Currently, Zoom Communications is carrying a Zacks Rank of #2 (Buy).
Digging into valuation, Zoom Communications currently has a Forward P/E ratio of 13.78. This represents a discount compared to its industry average Forward P/E of 28.26.
Meanwhile, ZM's PEG ratio is currently 7.39. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The average PEG ratio for the Internet - Software industry stood at 2.23 at the close of the market yesterday.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 48, this industry ranks in the top 20% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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.