Yahoo Finance Zoom Video Communications (ZM) Registers a Bigger Fall Than the Market: Important Facts to Note
Zoom Video Communications (ZM) closed at $67.21 in the latest trading session, marking a -0.59% move from the prior day. This change lagged the S&P 500's 0.17% loss on the day. On the other hand, the Dow registered a loss of 0.44%, and the technology-centric Nasdaq decreased by 0.04%.
The video-conferencing company's stock has dropped by 0.85% in the past month, falling short of the Computer and Technology sector's gain of 1.41% and the S&P 500's gain of 1.25%.
Investors will be eagerly watching for the performance of Zoom Video Communications in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $1.30, marking a 0.78% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.16 billion, up 2.32% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.31 per share and a revenue of $4.64 billion, indicating changes of +1.92% and +2.42%, respectively, from the former year.
Investors might also notice recent changes to analyst estimates for Zoom Video Communications. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.82% increase. Zoom Video Communications is currently sporting a Zacks Rank of #3 (Hold).
Looking at valuation, Zoom Video Communications is presently trading at a Forward P/E ratio of 12.73. This indicates a discount in contrast to its industry's Forward P/E of 30.39.
Investors should also note that ZM has a PEG ratio of 3.01 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Internet - Software industry held an average PEG ratio of 2.01.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 69, finds itself in the top 28% echelons 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Zoom Video Communications, Inc. (ZM) : Free Stock Analysis Report
