Zoom Video Communications (ZM - Free Report) closed at $73.09 in the latest trading session, marking a +0.65% move from the prior day. This move outpaced the S&P 500's daily loss of 0.29%. Elsewhere, the Dow lost 0.46%, while the tech-heavy Nasdaq lost 0.27%.
Heading into today, shares of the video-conferencing company had gained 16.21% over the past month, outpacing the Computer and Technology sector's gain of 7.47% and the S&P 500's gain of 4.56% in that time.
ZM will be looking to display strength as it nears its next earnings release.
Any recent changes to analyst estimates for ZM should also be noted by investors. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. ZM is currently a Zacks Rank #2 (Buy).
Investors should also note ZM's current valuation metrics, including its Forward P/E ratio of 268.06. Its industry sports an average Forward P/E of 56.14, 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 industry currently has a Zacks Industry Rank of 106, which puts it in the top 42% 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.