Zendesk (ZEN - Free Report) closed the most recent trading day at $79.79, moving +1.41% from the previous trading session. This change outpaced the S&P 500's 0.49% gain on the day. At the same time, the Dow added 0.57%, and the tech-heavy Nasdaq gained 0.67%.
Heading into today, shares of the customer-service software maker had gained 6.37% over the past month, outpacing the Computer and Technology sector's gain of 5.11% and the S&P 500's gain of 3.03% in that time.
Investors will be hoping for strength from ZEN as it approaches its next earnings release. On that day, ZEN is projected to report earnings of $0.11 per share, which would represent year-over-year growth of 10%. Meanwhile, our latest consensus estimate is calling for revenue of $227.82 million, up 32.26% from the prior-year quarter.
Investors should also note any recent changes to analyst estimates for ZEN. These recent revisions tend to reflect the evolving nature of short-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. 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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. ZEN is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that ZEN has a Forward P/E ratio of 133.13 right now. Its industry sports an average Forward P/E of 54.53, so we one might conclude that ZEN is trading at a premium comparatively.
Meanwhile, ZEN's PEG ratio is currently 4.51. 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. The Internet - Software industry currently had an average PEG ratio of 2.41 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 107, which puts it in the top 42% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.