Yahoo Finance Zoom Video Communications (ZM) Registers a Bigger Fall Than the Market: Important Facts to Note
Zoom Video Communications (ZM) closed the most recent trading day at $61.04, moving -0.99% from the previous trading session. This change lagged the S&P 500's daily loss of 0.46%. Meanwhile, the Dow experienced a drop of 0.98%, and the technology-dominated Nasdaq saw a decrease of 0.64%.
The the stock of video-conferencing company has fallen by 7.46% in the past month, lagging the Computer and Technology sector's loss of 5.01% and the S&P 500's loss of 3.04%.
The investment community will be closely monitoring the performance of Zoom Video Communications in its forthcoming earnings report. On that day, Zoom Video Communications is projected to report earnings of $1.19 per share, which would represent year-over-year growth of 2.59%. In the meantime, our current consensus estimate forecasts the revenue to be $1.13 billion, indicating a 1.81% growth compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $4.89 per share and a revenue of $4.6 billion, representing changes of -6.14% and +1.64%, respectively, from the prior 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. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 past month, there's been no change in the Zacks Consensus EPS estimate. At present, Zoom Video Communications boasts a Zacks Rank of #2 (Buy).
In terms of valuation, Zoom Video Communications is currently trading at a Forward P/E ratio of 12.6. This valuation marks a discount compared to its industry's average Forward P/E of 28.45.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 57, putting it in the top 23% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Zoom Video Communications, Inc. (ZM) : Free Stock Analysis Report
