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Zoom Communications (ZM) Gains But Lags Market: What You Should Know
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Zoom Communications (ZM - Free Report) closed the most recent trading day at $91.71, moving +2.04% from the previous trading session. The stock's change was less than the S&P 500's daily gain of 2.35%. Meanwhile, the Dow gained 2.15%, and the Nasdaq, a tech-heavy index, added 2.74%.
The video-conferencing company's shares have seen a decrease of 8.04% over the last month, surpassing the Computer and Technology sector's loss of 17.06% and falling behind the S&P 500's loss of 5.6%.
The upcoming earnings release of Zoom Communications will be of great interest to investors. The company's earnings report is expected on November 23, 2026. The company is expected to report EPS of $1.49, down 1.97% from the prior-year quarter. 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.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $6.15 per share and revenue of $5.09 billion. These totals would mark changes of +3.89% and +5.94%, 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. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. At present, Zoom Communications boasts a Zacks Rank of #2 (Buy).
In terms of valuation, Zoom Communications is currently trading at a Forward P/E ratio of 14.61. Its industry sports an average Forward P/E of 20.73, so one might conclude that Zoom Communications is trading at a discount comparatively.
Meanwhile, ZM's PEG ratio is currently 2.77. 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 1.24 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 90, this industry ranks in the top 37% of all industries, numbering over 250.
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) Gains But Lags Market: What You Should Know
Zoom Communications (ZM - Free Report) closed the most recent trading day at $91.71, moving +2.04% from the previous trading session. The stock's change was less than the S&P 500's daily gain of 2.35%. Meanwhile, the Dow gained 2.15%, and the Nasdaq, a tech-heavy index, added 2.74%.
The video-conferencing company's shares have seen a decrease of 8.04% over the last month, surpassing the Computer and Technology sector's loss of 17.06% and falling behind the S&P 500's loss of 5.6%.
The upcoming earnings release of Zoom Communications will be of great interest to investors. The company's earnings report is expected on November 23, 2026. The company is expected to report EPS of $1.49, down 1.97% from the prior-year quarter. 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.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $6.15 per share and revenue of $5.09 billion. These totals would mark changes of +3.89% and +5.94%, 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. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. At present, Zoom Communications boasts a Zacks Rank of #2 (Buy).
In terms of valuation, Zoom Communications is currently trading at a Forward P/E ratio of 14.61. Its industry sports an average Forward P/E of 20.73, so one might conclude that Zoom Communications is trading at a discount comparatively.
Meanwhile, ZM's PEG ratio is currently 2.77. 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 1.24 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 90, this industry ranks in the top 37% of all industries, numbering over 250.
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.