In the latest trading session, Zoom Video Communications (ZM) closed at $88.68, marking a -1.1% move from the previous day. This move lagged the S&P 500's daily gain of 0.17%. At the same time, the Dow 0%, and the tech-heavy Nasdaq gained 0.11%.
Prior to today's trading, shares of the video-conferencing company had gained 21.13% over the past month. This has outpaced the Computer and Technology sector's gain of 4.62% and the S&P 500's gain of 2.78% in that time.
ZM will be looking to display strength as it nears its next earnings release, which is expected to be March 4, 2020.
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 such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, ZM currently has a Forward P/E ratio of 328.79. This represents a premium compared to its industry's average Forward P/E of 49.91.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 76, which puts it in the top 30% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.