In the latest trading session, Zoom Communications (ZM) closed at $92.03, marking a +2.24% move from the previous day. The stock's performance was ahead of the S&P 500's daily gain of 0.8%. Meanwhile, the Dow experienced a drop of 0.16%, and the technology-dominated Nasdaq saw an increase of 1.63%.
The stock of video-conferencing company has risen by 13.48% in the past month, leading the Computer and Technology sector's gain of 12.05% and the S&P 500's gain of 8.11%.
Analysts and investors alike will be keeping a close eye on the performance of Zoom Communications in its upcoming earnings disclosure. The company is forecasted to report an EPS of $1.41, showcasing a 1.4% downward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $1.22 billion, indicating a 4.16% upward movement from the same quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $5.87 per share and a revenue of $5.06 billion, signifying shifts of -0.84% and +3.92%, respectively, from the last year.
Investors should also pay attention to any latest changes in analyst estimates for Zoom Communications. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, 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 remained stagnant. Right now, Zoom Communications possesses a Zacks Rank of #3 (Hold).
In the context of valuation, Zoom Communications is at present trading with a Forward P/E ratio of 15.34. This indicates a discount in contrast to its industry's Forward P/E of 18.57.
We can also see that ZM currently has a PEG ratio of 3.46. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ZM's industry had an average PEG ratio of 1.08 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 88, which puts it in the top 37% 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 follow all of these stock-moving metrics, and many more, on Zacks.com.
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Zoom Communications, Inc. (ZM): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).