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Zoom Communications (ZM) Falls More Steeply Than Broader Market: What Investors Need to Know
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In the latest close session, Zoom Communications (ZM - Free Report) was down 3.88% at $102.96. The stock fell short of the S&P 500, which registered a loss of 0.16% for the day. Elsewhere, the Dow gained 0.11%, while the tech-heavy Nasdaq lost 0.71%.
The video-conferencing company's stock has climbed by 29.37% in the past month, exceeding the Computer and Technology sector's gain of 17.98% and the S&P 500's gain of 8.81%.
Analysts and investors alike will be keeping a close eye on the performance of Zoom Communications in its upcoming earnings disclosure. The company's earnings report is set to go public on May 21, 2026. The company is forecasted to report an EPS of $1.41, showcasing a 1.4% downward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $1.22 billion, showing a 4.16% escalation compared to the year-ago 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 should also take note of any recent adjustments to analyst estimates for Zoom Communications. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Zoom Communications currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Zoom Communications is currently trading at a Forward P/E ratio of 18.25. This expresses a discount compared to the average Forward P/E of 18.73 of its industry.
It's also important to note that ZM currently trades at a PEG ratio of 4.12. 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. The average PEG ratio for the Internet - Software industry stood at 1.01 at the close of the market yesterday.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 78, finds itself in the top 32% echelons of all 250+ industries.
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.
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) Falls More Steeply Than Broader Market: What Investors Need to Know
In the latest close session, Zoom Communications (ZM - Free Report) was down 3.88% at $102.96. The stock fell short of the S&P 500, which registered a loss of 0.16% for the day. Elsewhere, the Dow gained 0.11%, while the tech-heavy Nasdaq lost 0.71%.
The video-conferencing company's stock has climbed by 29.37% in the past month, exceeding the Computer and Technology sector's gain of 17.98% and the S&P 500's gain of 8.81%.
Analysts and investors alike will be keeping a close eye on the performance of Zoom Communications in its upcoming earnings disclosure. The company's earnings report is set to go public on May 21, 2026. The company is forecasted to report an EPS of $1.41, showcasing a 1.4% downward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $1.22 billion, showing a 4.16% escalation compared to the year-ago 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 should also take note of any recent adjustments to analyst estimates for Zoom Communications. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Zoom Communications currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Zoom Communications is currently trading at a Forward P/E ratio of 18.25. This expresses a discount compared to the average Forward P/E of 18.73 of its industry.
It's also important to note that ZM currently trades at a PEG ratio of 4.12. 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. The average PEG ratio for the Internet - Software industry stood at 1.01 at the close of the market yesterday.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 78, finds itself in the top 32% echelons of all 250+ industries.
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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.