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Zoom Communications (ZM) Beats Stock Market Upswing: What Investors Need to Know
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In the latest trading session, Zoom Communications (ZM - Free Report) closed at $98.04, marking a +2.37% move from the previous day. The stock's performance was ahead of the S&P 500's daily gain of 0.7%. Meanwhile, the Dow experienced a rise of 0.28%, and the technology-dominated Nasdaq saw an increase of 0.83%.
Heading into today, shares of the video-conferencing company had gained 6.76% over the past month, outpacing the Computer and Technology sector's loss of 7.7% and the S&P 500's loss of 1.21%.
The upcoming earnings release of Zoom Communications will be of great interest to investors. It is anticipated that the company will report an EPS of $1.5, marking a 1.32% fall compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $1.28 billion, indicating a 3.98% growth compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $6.24 per share and a revenue of $5.09 billion, signifying shifts of +5.41% and +4.58%, respectively, from the last year.
Any recent changes to analyst estimates for Zoom Communications should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Right now, Zoom Communications possesses a Zacks Rank of #3 (Hold).
With respect to valuation, Zoom Communications is currently being traded at a Forward P/E ratio of 15.36. This valuation marks a discount compared to its industry average Forward P/E of 20.75.
It is also worth noting that ZM currently has a PEG ratio of 2.91. 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. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 1.31.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 82, placing it within the top 34% of over 250 industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
Image: Bigstock
Zoom Communications (ZM) Beats Stock Market Upswing: What Investors Need to Know
In the latest trading session, Zoom Communications (ZM - Free Report) closed at $98.04, marking a +2.37% move from the previous day. The stock's performance was ahead of the S&P 500's daily gain of 0.7%. Meanwhile, the Dow experienced a rise of 0.28%, and the technology-dominated Nasdaq saw an increase of 0.83%.
Heading into today, shares of the video-conferencing company had gained 6.76% over the past month, outpacing the Computer and Technology sector's loss of 7.7% and the S&P 500's loss of 1.21%.
The upcoming earnings release of Zoom Communications will be of great interest to investors. It is anticipated that the company will report an EPS of $1.5, marking a 1.32% fall compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $1.28 billion, indicating a 3.98% growth compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $6.24 per share and a revenue of $5.09 billion, signifying shifts of +5.41% and +4.58%, respectively, from the last year.
Any recent changes to analyst estimates for Zoom Communications should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Right now, Zoom Communications possesses a Zacks Rank of #3 (Hold).
With respect to valuation, Zoom Communications is currently being traded at a Forward P/E ratio of 15.36. This valuation marks a discount compared to its industry average Forward P/E of 20.75.
It is also worth noting that ZM currently has a PEG ratio of 2.91. 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. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 1.31.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 82, placing it within the top 34% of over 250 industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.