In the latest trading session, Zoom Video Communications (ZM - Free Report) closed at $106.88, marking a -0.19% move from the previous day. This change was narrower than the S&P 500's daily loss of 0.38%. Elsewhere, the Dow lost 0.46%, while the tech-heavy Nasdaq added 0.17%.
Prior to today's trading, shares of the video-conferencing company had gained 49.74% over the past month. This has outpaced the Computer and Technology sector's loss of 5.23% and the S&P 500's loss of 4.88% 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.
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. 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. 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 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. The Zacks Consensus EPS estimate remained stagnant within the past month. ZM currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, ZM is holding a Forward P/E ratio of 392.63. This valuation marks a premium compared to its industry's average Forward P/E of 49.9.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 112, which puts it in the top 44% 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.