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Zoom Communications (ZM) Laps the Stock Market: Here's Why
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In the latest trading session, Zoom Communications (ZM - Free Report) closed at $84.02, marking a +1.62% move from the previous day. This change outpaced the S&P 500's 0.08% gain on the day. Elsewhere, the Dow saw a downswing of 0.18%, while the tech-heavy Nasdaq appreciated by 0.1%.
The video-conferencing company's stock has climbed by 7.29% in the past month, exceeding the Computer and Technology sector's loss of 2.82% and the S&P 500's loss of 1.74%.
The investment community will be paying close attention to the earnings performance of Zoom Communications in its upcoming release. The company's upcoming EPS is projected at $1.41, signifying a 1.40% drop compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $1.22 billion, reflecting a 4.16% rise from the equivalent quarter last year.
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. These revisions help to show the ever-changing nature of near-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. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.07% downward. As of now, Zoom Communications holds a Zacks Rank of #3 (Hold).
Looking at valuation, Zoom Communications is presently trading at a Forward P/E ratio of 14.09. This indicates a discount in contrast to its industry's Forward P/E of 19.31.
It's also important to note that ZM currently trades at a PEG ratio of 3.18. 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. ZM's industry had an average PEG ratio of 1.07 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 146, this industry ranks in the bottom 41% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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) Laps the Stock Market: Here's Why
In the latest trading session, Zoom Communications (ZM - Free Report) closed at $84.02, marking a +1.62% move from the previous day. This change outpaced the S&P 500's 0.08% gain on the day. Elsewhere, the Dow saw a downswing of 0.18%, while the tech-heavy Nasdaq appreciated by 0.1%.
The video-conferencing company's stock has climbed by 7.29% in the past month, exceeding the Computer and Technology sector's loss of 2.82% and the S&P 500's loss of 1.74%.
The investment community will be paying close attention to the earnings performance of Zoom Communications in its upcoming release. The company's upcoming EPS is projected at $1.41, signifying a 1.40% drop compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $1.22 billion, reflecting a 4.16% rise from the equivalent quarter last year.
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. These revisions help to show the ever-changing nature of near-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. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.07% downward. As of now, Zoom Communications holds a Zacks Rank of #3 (Hold).
Looking at valuation, Zoom Communications is presently trading at a Forward P/E ratio of 14.09. This indicates a discount in contrast to its industry's Forward P/E of 19.31.
It's also important to note that ZM currently trades at a PEG ratio of 3.18. 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. ZM's industry had an average PEG ratio of 1.07 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 146, this industry ranks in the bottom 41% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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.