Zoom Video Communications (ZM - Free Report) closed the most recent trading day at $70.12, moving -0.38% from the previous trading session. This move lagged the S&P 500's daily gain of 0.37%. At the same time, the Dow added 0.42%, and the tech-heavy Nasdaq gained 0.56%.
Coming into today, shares of the video-conferencing company had lost 9.03% in the past month. In that same time, the Computer and Technology sector gained 5.93%, while the S&P 500 gained 4.42%.
Investors will be hoping for strength from ZM as it approaches its next earnings release, which is expected to be December 5, 2019.
Investors should also note any recent changes to analyst estimates for ZM. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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. Within the past 30 days, our consensus EPS projection has moved 52.63% higher. ZM currently has a Zacks Rank of #2 (Buy).
In terms of valuation, ZM is currently trading at a Forward P/E ratio of 378.44. Its industry sports an average Forward P/E of 56.32, so we one might conclude that ZM is trading at a premium comparatively.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 64, putting it in the top 26% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.