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Zoom Communications (ZM) Beats Stock Market Upswing: What Investors Need to Know
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Zoom Communications (ZM - Free Report) closed at $97.15 in the latest trading session, marking a +1.45% move from the prior day. The stock outperformed the S&P 500, which registered a daily gain of 1.02%. At the same time, the Dow added 1.62%, and the tech-heavy Nasdaq gained 0.89%.
Shares of the video-conferencing company have appreciated by 18.66% over the course of the past month, underperforming the Computer and Technology sector's gain of 20.71%, and outperforming the S&P 500's gain of 12.23%.
Market participants will be closely following the financial results of Zoom Communications in its upcoming release. In that report, analysts expect Zoom Communications to post earnings of $1.41 per share. This would mark a year-over-year decline of 1.4%. Meanwhile, the latest consensus estimate predicts the revenue to be $1.22 billion, indicating a 4.16% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $5.87 per share and revenue of $5.06 billion, which would represent changes of -0.84% and +3.92%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Zoom Communications. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Over the past month, the Zacks Consensus EPS estimate has remained steady. Zoom Communications is currently a Zacks Rank #4 (Sell).
Digging into valuation, Zoom Communications currently has a Forward P/E ratio of 16.32. This indicates a discount in contrast to its industry's Forward P/E of 18.9.
We can additionally observe that ZM currently boasts a PEG ratio of 3.68. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Internet - Software industry held an average PEG ratio of 1.07.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 72, putting it in the top 30% 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Zoom Communications (ZM) Beats Stock Market Upswing: What Investors Need to Know
Zoom Communications (ZM - Free Report) closed at $97.15 in the latest trading session, marking a +1.45% move from the prior day. The stock outperformed the S&P 500, which registered a daily gain of 1.02%. At the same time, the Dow added 1.62%, and the tech-heavy Nasdaq gained 0.89%.
Shares of the video-conferencing company have appreciated by 18.66% over the course of the past month, underperforming the Computer and Technology sector's gain of 20.71%, and outperforming the S&P 500's gain of 12.23%.
Market participants will be closely following the financial results of Zoom Communications in its upcoming release. In that report, analysts expect Zoom Communications to post earnings of $1.41 per share. This would mark a year-over-year decline of 1.4%. Meanwhile, the latest consensus estimate predicts the revenue to be $1.22 billion, indicating a 4.16% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $5.87 per share and revenue of $5.06 billion, which would represent changes of -0.84% and +3.92%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Zoom Communications. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Over the past month, the Zacks Consensus EPS estimate has remained steady. Zoom Communications is currently a Zacks Rank #4 (Sell).
Digging into valuation, Zoom Communications currently has a Forward P/E ratio of 16.32. This indicates a discount in contrast to its industry's Forward P/E of 18.9.
We can additionally observe that ZM currently boasts a PEG ratio of 3.68. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Internet - Software industry held an average PEG ratio of 1.07.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 72, putting it in the top 30% 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.