Zoom Video Communications (ZM - Free Report) closed at $68 in the latest trading session, marking a -0.57% move from the prior day. This move lagged the S&P 500's daily gain of 0.16%. Meanwhile, the Dow 0%, and the Nasdaq, a tech-heavy index, added 0.26%.
Coming into today, shares of the video-conferencing company had lost 3.4% in the past month. In that same time, the Computer and Technology sector gained 4.79%, while the S&P 500 gained 4.12%.
Wall Street will be looking for positivity from ZM as it approaches its next earnings report date. This 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. ZM is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, ZM is currently trading at a Forward P/E ratio of 367.69. This represents a premium compared to its industry's average Forward P/E of 57.01.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 102, putting it in the top 40% 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.