We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Zoom Communications (ZM) Stock Declines While Market Improves: Some Information for Investors
Read MoreHide Full Article
Zoom Communications (ZM - Free Report) closed at $86.67 in the latest trading session, marking a -2.65% move from the prior day. This change lagged the S&P 500's daily gain of 0.26%. At the same time, the Dow added 0.24%, and the tech-heavy Nasdaq gained 0.36%.
The video-conferencing company's shares have seen an increase of 16.49% over the last month, surpassing the Computer and Technology sector's gain of 9.34% and the S&P 500's gain of 5.98%.
Analysts and investors alike will be keeping a close eye on the performance of Zoom Communications in its upcoming earnings disclosure. On that day, Zoom Communications is projected to report earnings of $1.41 per share, which would represent a year-over-year decline of 1.4%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.22 billion, up 4.16% from the year-ago period.
ZM's full-year Zacks Consensus Estimates are calling for earnings of $5.87 per share and revenue of $5.06 billion. These results would represent year-over-year changes of -0.84% and +3.92%, respectively.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Zoom Communications. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Zoom Communications is currently a Zacks Rank #3 (Hold).
Investors should also note Zoom Communications's current valuation metrics, including its Forward P/E ratio of 15.17. This expresses a discount compared to the average Forward P/E of 18.83 of its industry.
Meanwhile, ZM's PEG ratio is currently 3.42. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Internet - Software stocks are, on average, holding a PEG ratio of 1.09 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 89, finds itself in the top 37% echelons of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Bigstock
Zoom Communications (ZM) Stock Declines While Market Improves: Some Information for Investors
Zoom Communications (ZM - Free Report) closed at $86.67 in the latest trading session, marking a -2.65% move from the prior day. This change lagged the S&P 500's daily gain of 0.26%. At the same time, the Dow added 0.24%, and the tech-heavy Nasdaq gained 0.36%.
The video-conferencing company's shares have seen an increase of 16.49% over the last month, surpassing the Computer and Technology sector's gain of 9.34% and the S&P 500's gain of 5.98%.
Analysts and investors alike will be keeping a close eye on the performance of Zoom Communications in its upcoming earnings disclosure. On that day, Zoom Communications is projected to report earnings of $1.41 per share, which would represent a year-over-year decline of 1.4%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.22 billion, up 4.16% from the year-ago period.
ZM's full-year Zacks Consensus Estimates are calling for earnings of $5.87 per share and revenue of $5.06 billion. These results would represent year-over-year changes of -0.84% and +3.92%, respectively.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Zoom Communications. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Zoom Communications is currently a Zacks Rank #3 (Hold).
Investors should also note Zoom Communications's current valuation metrics, including its Forward P/E ratio of 15.17. This expresses a discount compared to the average Forward P/E of 18.83 of its industry.
Meanwhile, ZM's PEG ratio is currently 3.42. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Internet - Software stocks are, on average, holding a PEG ratio of 1.09 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 89, finds itself in the top 37% echelons of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.