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Zoom Communications (ZM) Falls More Steeply Than Broader Market: What Investors Need to Know
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In the latest close session, Zoom Communications (ZM - Free Report) was down 1.17% at $74.51. This change lagged the S&P 500's daily loss of 0.3%. Elsewhere, the Dow saw a downswing of 0.46%, while the tech-heavy Nasdaq depreciated by 0.38%.
Shares of the video-conferencing company have depreciated by 3.32% over the course of the past month, underperforming the Computer and Technology sector's gain of 4.85%, and the S&P 500's gain of 3.64%.
The investment community will be closely monitoring the performance of Zoom Communications in its forthcoming earnings report. The company is predicted to post an EPS of $1.37, indicating a 1.44% decline compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $1.2 billion, reflecting a 3.02% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $5.59 per share and a revenue of $4.81 billion, demonstrating changes of +0.9% and +2.99%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Zoom Communications. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. As of now, Zoom Communications holds a Zacks Rank of #2 (Buy).
Looking at valuation, Zoom Communications is presently trading at a Forward P/E ratio of 13.49. This represents a discount compared to its industry average Forward P/E of 29.27.
Investors should also note that ZM has a PEG ratio of 7.14 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 2.21.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 72, placing it within the top 30% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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 Communications (ZM) Falls More Steeply Than Broader Market: What Investors Need to Know
In the latest close session, Zoom Communications (ZM - Free Report) was down 1.17% at $74.51. This change lagged the S&P 500's daily loss of 0.3%. Elsewhere, the Dow saw a downswing of 0.46%, while the tech-heavy Nasdaq depreciated by 0.38%.
Shares of the video-conferencing company have depreciated by 3.32% over the course of the past month, underperforming the Computer and Technology sector's gain of 4.85%, and the S&P 500's gain of 3.64%.
The investment community will be closely monitoring the performance of Zoom Communications in its forthcoming earnings report. The company is predicted to post an EPS of $1.37, indicating a 1.44% decline compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $1.2 billion, reflecting a 3.02% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $5.59 per share and a revenue of $4.81 billion, demonstrating changes of +0.9% and +2.99%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Zoom Communications. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. As of now, Zoom Communications holds a Zacks Rank of #2 (Buy).
Looking at valuation, Zoom Communications is presently trading at a Forward P/E ratio of 13.49. This represents a discount compared to its industry average Forward P/E of 29.27.
Investors should also note that ZM has a PEG ratio of 7.14 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 2.21.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 72, placing it within the top 30% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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.