Zoom Video Communications (ZM - Free Report) closed at $74.55 in the latest trading session, marking a +1.9% move from the prior day. This change outpaced the S&P 500's 0.75% gain on the day. At the same time, the Dow added 0.69%, and the tech-heavy Nasdaq gained 1.32%.
Coming into today, shares of the video-conferencing company had gained 13.39% in the past month. In that same time, the Computer and Technology sector gained 5.59%, while the S&P 500 gained 3.42%.
ZM will be looking to display strength as it nears its next earnings release, which is expected to be December 5, 2019.
It is also important to note the recent changes to analyst estimates for ZM. These revisions help to show the ever-changing nature of 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. 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 remained stagnant within the past month. 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 375.91. Its industry sports an average Forward P/E of 56.03, 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 102, putting it in the top 40% 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.