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Zoom Communications (ZM) Rises But Trails Market: What Investors Should Know
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In the latest trading session, Zoom Communications (ZM - Free Report) closed at $80.39, marking a +2.17% move from the previous day. The stock fell short of the S&P 500, which registered a gain of 2.91% for the day. Elsewhere, the Dow saw an upswing of 2.49%, while the tech-heavy Nasdaq appreciated by 3.83%.
Coming into today, shares of the video-conferencing company had gained 8.2% in the past month. In that same time, the Computer and Technology sector lost 9.45%, while the S&P 500 lost 7.64%.
Investors will be eagerly watching for the performance of Zoom Communications in its upcoming earnings disclosure. The company's upcoming EPS is projected at $1.41, signifying a 1.40% drop compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $1.22 billion, up 4.16% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $5.87 per share and revenue of $5.06 billion. These totals would mark changes of -0.84% and +3.92%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Zoom Communications. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.26% downward. Zoom Communications is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Zoom Communications is presently being traded at a Forward P/E ratio of 13.41. This valuation marks a discount compared to its industry average Forward P/E of 18.75.
We can also see that ZM currently has a PEG ratio of 3.02. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Software industry currently had an average PEG ratio of 1.04 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 151, putting it in the bottom 39% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Zoom Communications (ZM) Rises But Trails Market: What Investors Should Know
In the latest trading session, Zoom Communications (ZM - Free Report) closed at $80.39, marking a +2.17% move from the previous day. The stock fell short of the S&P 500, which registered a gain of 2.91% for the day. Elsewhere, the Dow saw an upswing of 2.49%, while the tech-heavy Nasdaq appreciated by 3.83%.
Coming into today, shares of the video-conferencing company had gained 8.2% in the past month. In that same time, the Computer and Technology sector lost 9.45%, while the S&P 500 lost 7.64%.
Investors will be eagerly watching for the performance of Zoom Communications in its upcoming earnings disclosure. The company's upcoming EPS is projected at $1.41, signifying a 1.40% drop compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $1.22 billion, up 4.16% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $5.87 per share and revenue of $5.06 billion. These totals would mark changes of -0.84% and +3.92%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Zoom Communications. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.26% downward. Zoom Communications is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Zoom Communications is presently being traded at a Forward P/E ratio of 13.41. This valuation marks a discount compared to its industry average Forward P/E of 18.75.
We can also see that ZM currently has a PEG ratio of 3.02. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Software industry currently had an average PEG ratio of 1.04 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 151, putting it in the bottom 39% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
You can find more information on all of these metrics, and much more, on Zacks.com.