Zuora (ZUO) Dips More Than Broader Markets: What You Should Know

Zacks Equity Research
Skyworks Solutions (SWKS) closed the most recent trading day at $81.32, moving -0.12% from the previous trading session.

Zuora (ZUO) closed at $22.39 in the latest trading session, marking a -0.89% move from the prior day. This move lagged the S&P 500's daily loss of 0.28%. Elsewhere, the Dow lost 0.39%, while the tech-heavy Nasdaq lost 0.45%.

Coming into today, shares of the enterprise software company had gained 13.01% in the past month. In that same time, the Computer and Technology sector lost 3.84%, while the S&P 500 lost 1.21%.

Wall Street will be looking for positivity from ZUO as it approaches its next earnings report date. This is expected to be May 30, 2019. In that report, analysts expect ZUO to post earnings of -$0.14 per share. This would mark year-over-year growth of 56.25%. Meanwhile, our latest consensus estimate is calling for revenue of $63.80 million, up 23.31% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$0.42 per share and revenue of $290.71 million. These totals would mark changes of +23.64% and +23.6%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for ZUO. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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. Within the past 30 days, our consensus EPS projection remained stagnant. ZUO is currently sporting a Zacks Rank of #2 (Buy).

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 77, which puts it in the top 31% 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.


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