Zendesk (ZEN - Free Report) closed at $82.60 in the latest trading session, marking a +0.99% move from the prior day. This change outpaced the S&P 500's 0.61% loss on the day. Meanwhile, the Dow lost 0.72%, and the Nasdaq, a tech-heavy index, lost 0.56%.
Prior to today's trading, shares of the customer-service software maker had gained 3.26% over the past month. This has lagged the Computer and Technology sector's gain of 7.18% and the S&P 500's gain of 5.68% in that time.
Investors will be hoping for strength from ZEN as it approaches its next earnings release, which is expected to be April 30, 2019. In that report, analysts expect ZEN to post earnings of $0.03 per share. This would mark year-over-year growth of 50%. Meanwhile, our latest consensus estimate is calling for revenue of $179.64 million, up 38.41% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.29 per share and revenue of $803.10 million, which would represent changes of +31.82% and +34.13%, respectively, from the prior year.
Any recent changes to analyst estimates for ZEN should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 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 remained stagnant. ZEN is currently a Zacks Rank #3 (Hold).
Looking at its valuation, ZEN is holding a Forward P/E ratio of 277.93. This represents a premium compared to its industry's average Forward P/E of 55.52.
Meanwhile, ZEN's PEG ratio is currently 9.41. 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 Internet - Software was holding an average PEG ratio of 3.17 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 71, putting it in the top 28% of all 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.