Zoom Video Communications (ZM - Free Report) closed at $86.99 in the latest trading session, marking a +1.4% move from the prior day. The stock outpaced the S&P 500's daily gain of 1.13%. Elsewhere, the Dow gained 1.68%, while the tech-heavy Nasdaq added 0.43%.
Heading into today, shares of the video-conferencing company had gained 19.32% over the past month, outpacing the Computer and Technology sector's gain of 5.2% and the S&P 500's gain of 2.1% in that time.
Investors will be hoping for strength from ZM as it approaches its next earnings release, which is expected to be March 4, 2020.
Investors should also note any recent changes to analyst estimates for ZM. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. ZM currently has a Zacks Rank of #3 (Hold).
In terms of valuation, ZM is currently trading at a Forward P/E ratio of 314.56. This valuation marks a premium compared to its industry's average Forward P/E of 51.59.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 109, which puts it in the top 43% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.