Zoom Communications (ZM – Free Report) closed at $68.05 in the latest trading session, marking a +0.44% move from the prior day. The stock exceeded the S&P 500, which registered a loss of 0.23% for the day. Elsewhere, the Dow lost 0.91%, while the tech-heavy Nasdaq added 0.1%.
The the stock of video-conferencing company has fallen by 10.83% in the past month, leading the Computer and Technology sector’s loss of 16.18% and the S&P 500’s loss of 12.13%.
The investment community will be paying close attention to the earnings performance of Zoom Communications in its upcoming release. The company is predicted to post an EPS of $1.30, indicating a 3.7% decline compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $1.17 billion, indicating a 2.1% growth compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.37 per share and a revenue of $4.79 billion, indicating changes of -3.07% and +2.68%, respectively, from the former year.
Investors should also note any recent changes to analyst estimates for Zoom Communications. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.62% higher. At present, Zoom Communications boasts a Zacks Rank of #2 (Buy).
With respect to valuation, Zoom Communications is currently being traded at a Forward P/E ratio of 12.61. This indicates a discount in contrast to its industry’s Forward P/E of 23.71.
One should further note that ZM currently holds a PEG ratio of 7.98. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company’s projected earnings growth. The Internet – Software industry had an average PEG ratio of 1.77 as trading concluded yesterday.
The Internet – Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 82, placing it within the top 34% of over 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
Financial Market Newsflash
No financial news published today. Check back later.
