Zoom Video Communications (ZM - Free Report) closed at $65.49 in the latest trading session, marking a -1.61% move from the prior day. This move lagged the S&P 500's daily loss of 0.08%. Elsewhere, the Dow lost 0.07%, while the tech-heavy Nasdaq lost 0.59%.
Prior to today's trading, shares of the video-conferencing company had lost 12.65% over the past month. This has lagged the Computer and Technology sector's gain of 4.71% and the S&P 500's gain of 2.7% in that time.
Investors will be hoping for strength from ZM as it approaches its next earnings release.
Investors might also notice recent changes to analyst estimates for ZM. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 52.63% higher within the past month. ZM is currently a Zacks Rank #2 (Buy).
Digging into valuation, ZM currently has a Forward P/E ratio of 357.85. This valuation marks a premium compared to its industry's average Forward P/E of 55.34.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 74, which puts it in the top 30% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.