Zoom Video Communications (ZM) closed at $157.23 in the latest trading session, marking a -0.3% move from the prior day. This change was narrower than the S&P 500's 0.97% loss on the day. At the same time, the Dow lost 0.96%, and the tech-heavy Nasdaq gained 0.23%.
Prior to today's trading, shares of the video-conferencing company had lost 20.92% over the past month. This has lagged the Computer and Technology sector's loss of 4.93% and the S&P 500's loss of 0.78% in that time.
Wall Street will be looking for positivity from Zoom Video Communications as it approaches its next earnings report date. On that day, Zoom Video Communications is projected to report earnings of $1.07 per share, which would represent a year-over-year decline of 12.3%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.05 billion, up 19.25% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.85 per share and revenue of $4.08 billion. These totals would mark changes of +45.21% and +53.91%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Zoom Video Communications. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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. Within the past 30 days, our consensus EPS projection remained stagnant. Zoom Video Communications is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Zoom Video Communications is currently trading at a Forward P/E ratio of 32.52. This valuation marks a discount compared to its industry's average Forward P/E of 47.03.
We can also see that ZM currently has a PEG ratio of 1.67. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ZM's industry had an average PEG ratio of 2.79 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 153, putting it in the bottom 40% 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.
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Zoom Video Communications, Inc. (ZM) : Free Stock Analysis Report
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