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Zoom Communications (ZM) Dips More Than Broader Market: What You Should Know
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Zoom Communications (ZM - Free Report) closed at $91.98 in the latest trading session, marking a -3.69% move from the prior day. This change lagged the S&P 500's 0.51% loss on the day. Elsewhere, the Dow gained 0.41%, while the tech-heavy Nasdaq lost 1.07%.
Shares of the video-conferencing company have appreciated by 2.82% over the course of the past month, outperforming the Computer and Technology sector's loss of 9.88%, and the S&P 500's loss of 0.87%.
The investment community will be paying close attention to the earnings performance of Zoom Communications in its upcoming release. The company is slated to reveal its earnings on November 23, 2026. The company's earnings per share (EPS) are projected to be $1.49, reflecting a 1.97% decrease from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $1.28 billion, reflecting a 3.98% rise from the equivalent quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $6.22 per share and revenue of $5.09 billion, indicating changes of +5.07% and +4.58%, respectively, compared to the previous 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.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.6% lower. Right now, Zoom Communications possesses a Zacks Rank of #3 (Hold).
Looking at its valuation, Zoom Communications is holding a Forward P/E ratio of 15.35. This signifies a discount in comparison to the average Forward P/E of 20.3 for its industry.
Investors should also note that ZM has a PEG ratio of 2.9 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The average PEG ratio for the Internet - Software industry stood at 1.27 at the close of the market yesterday.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 93, putting it in the top 38% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
View the Zacks #1 Rank List
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Zoom Communications (ZM) Dips More Than Broader Market: What You Should Know
Zoom Communications (ZM - Free Report) closed at $91.98 in the latest trading session, marking a -3.69% move from the prior day. This change lagged the S&P 500's 0.51% loss on the day. Elsewhere, the Dow gained 0.41%, while the tech-heavy Nasdaq lost 1.07%.
Shares of the video-conferencing company have appreciated by 2.82% over the course of the past month, outperforming the Computer and Technology sector's loss of 9.88%, and the S&P 500's loss of 0.87%.
The investment community will be paying close attention to the earnings performance of Zoom Communications in its upcoming release. The company is slated to reveal its earnings on November 23, 2026. The company's earnings per share (EPS) are projected to be $1.49, reflecting a 1.97% decrease from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $1.28 billion, reflecting a 3.98% rise from the equivalent quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $6.22 per share and revenue of $5.09 billion, indicating changes of +5.07% and +4.58%, respectively, compared to the previous 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.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.6% lower. Right now, Zoom Communications possesses a Zacks Rank of #3 (Hold).
Looking at its valuation, Zoom Communications is holding a Forward P/E ratio of 15.35. This signifies a discount in comparison to the average Forward P/E of 20.3 for its industry.
Investors should also note that ZM has a PEG ratio of 2.9 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The average PEG ratio for the Internet - Software industry stood at 1.27 at the close of the market yesterday.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 93, putting it in the top 38% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.