VMware (VMW - Free Report) closed at $163.25 in the latest trading session, marking a -0.18% move from the prior day. This change lagged the S&P 500's daily loss of 0.12%. Meanwhile, the Dow gained 0.11%, and the Nasdaq, a tech-heavy index, added 0.02%.
Prior to today's trading, shares of the cloud computing company had gained 7.16% over the past month. This has outpaced the Computer and Technology sector's gain of 5.66% and the S&P 500's gain of 4.42% in that time.
VMW will be looking to display strength as it nears its next earnings release. In that report, analysts expect VMW to post earnings of $1.42 per share. This would mark a year-over-year decline of 8.97%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.40 billion, up 9.24% from the year-ago period.
VMW's full-year Zacks Consensus Estimates are calling for earnings of $6.54 per share and revenue of $10.03 billion. These results would represent year-over-year changes of +3.32% and +11.74%, respectively.
Investors might also notice recent changes to analyst estimates for VMW. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. Within the past 30 days, our consensus EPS projection has moved 0.2% lower. VMW is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, VMW currently has a Forward P/E ratio of 25.02. This represents a discount compared to its industry's average Forward P/E of 30.42.
Investors should also note that VMW has a PEG ratio of 1.86 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Computer - Software stocks are, on average, holding a PEG ratio of 2.26 based on yesterday's closing prices.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 45, which puts it in the top 18% 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.