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Zoom Communications (ZM) Outperforms Broader Market: What You Need to Know
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Zoom Communications (ZM - Free Report) closed the most recent trading day at $81.91, moving +2.37% from the previous trading session. The stock outperformed the S&P 500, which registered a daily gain of 1.07%. Meanwhile, the Dow experienced a rise of 1.12%, and the technology-dominated Nasdaq saw an increase of 1.37%.
The video-conferencing company's stock has dropped by 4.93% in the past month, falling short of the Computer and Technology sector's gain of 2.68% and the S&P 500's gain of 1.08%.
Investors will be eagerly watching for the performance of Zoom Communications in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $1.43, reflecting a 3.62% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $1.21 billion, up 3% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $5.83 per share and a revenue of $4.82 billion, signifying shifts of +5.23% and +3.41%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates for Zoom 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 business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.17% higher within the past month. Zoom Communications presently features a Zacks Rank of #1 (Strong Buy).
With respect to valuation, Zoom Communications is currently being traded at a Forward P/E ratio of 13.72. For comparison, its industry has an average Forward P/E of 29.15, which means Zoom Communications is trading at a discount to the group.
Also, we should mention that ZM has a PEG ratio of 6.83. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 1.91.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 68, which puts it in the top 28% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Zoom Communications (ZM) Outperforms Broader Market: What You Need to Know
Zoom Communications (ZM - Free Report) closed the most recent trading day at $81.91, moving +2.37% from the previous trading session. The stock outperformed the S&P 500, which registered a daily gain of 1.07%. Meanwhile, the Dow experienced a rise of 1.12%, and the technology-dominated Nasdaq saw an increase of 1.37%.
The video-conferencing company's stock has dropped by 4.93% in the past month, falling short of the Computer and Technology sector's gain of 2.68% and the S&P 500's gain of 1.08%.
Investors will be eagerly watching for the performance of Zoom Communications in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $1.43, reflecting a 3.62% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $1.21 billion, up 3% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $5.83 per share and a revenue of $4.82 billion, signifying shifts of +5.23% and +3.41%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates for Zoom 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 business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.17% higher within the past month. Zoom Communications presently features a Zacks Rank of #1 (Strong Buy).
With respect to valuation, Zoom Communications is currently being traded at a Forward P/E ratio of 13.72. For comparison, its industry has an average Forward P/E of 29.15, which means Zoom Communications is trading at a discount to the group.
Also, we should mention that ZM has a PEG ratio of 6.83. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 1.91.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 68, which puts it in the top 28% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.