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Zoom Communications (ZM) Rises As Market Takes a Dip: Key Facts
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Zoom Communications (ZM - Free Report) closed the most recent trading day at $92.41, moving +1.02% from the previous trading session. The stock's performance was ahead of the S&P 500's daily loss of 1.52%. Meanwhile, the Dow lost 2.19%, and the Nasdaq, a tech-heavy index, lost 1.74%.
Shares of the video-conferencing company have appreciated by 5.99% over the course of the past month, outperforming the Computer and Technology sector's loss of 3.5%, and the S&P 500's gain of 1.92%.
Investors will be eagerly watching for the performance of Zoom Communications in its upcoming earnings disclosure. The company is predicted to post an EPS of $1.5, indicating a 1.96% decline compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $1.27 billion, up 4.22% from the prior-year quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $6.17 per share and a revenue of $5.09 billion, representing changes of +4.22% and +4.54%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Zoom Communications. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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 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, the Zacks Consensus EPS estimate has shifted 2.98% upward. As of now, Zoom Communications holds a Zacks Rank of #3 (Hold).
With respect to valuation, Zoom Communications is currently being traded at a Forward P/E ratio of 14.84. This represents a discount compared to its industry average Forward P/E of 20.42.
It's also important to note that ZM currently trades at a PEG ratio of 3.35. 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. Internet - Software stocks are, on average, holding a PEG ratio of 1.14 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 147, placing it within the bottom 41% of over 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
View the Zacks #1 Rank List
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Zoom Communications (ZM) Rises As Market Takes a Dip: Key Facts
Zoom Communications (ZM - Free Report) closed the most recent trading day at $92.41, moving +1.02% from the previous trading session. The stock's performance was ahead of the S&P 500's daily loss of 1.52%. Meanwhile, the Dow lost 2.19%, and the Nasdaq, a tech-heavy index, lost 1.74%.
Shares of the video-conferencing company have appreciated by 5.99% over the course of the past month, outperforming the Computer and Technology sector's loss of 3.5%, and the S&P 500's gain of 1.92%.
Investors will be eagerly watching for the performance of Zoom Communications in its upcoming earnings disclosure. The company is predicted to post an EPS of $1.5, indicating a 1.96% decline compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $1.27 billion, up 4.22% from the prior-year quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $6.17 per share and a revenue of $5.09 billion, representing changes of +4.22% and +4.54%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Zoom Communications. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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 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, the Zacks Consensus EPS estimate has shifted 2.98% upward. As of now, Zoom Communications holds a Zacks Rank of #3 (Hold).
With respect to valuation, Zoom Communications is currently being traded at a Forward P/E ratio of 14.84. This represents a discount compared to its industry average Forward P/E of 20.42.
It's also important to note that ZM currently trades at a PEG ratio of 3.35. 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. Internet - Software stocks are, on average, holding a PEG ratio of 1.14 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 147, placing it within the bottom 41% of over 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.
You can find more information on all of these metrics, and much more, on Zacks.com.