Zoom Communications (ZM) closed at $92.60 in the latest trading session, marking a +1.59% move from the prior day. The stock's change was more than the S&P 500's daily gain of 0.38%. At the same time, the Dow added 0.29%, and the tech-heavy Nasdaq gained 0.62%.
Coming into today, shares of the video-conferencing company had lost 1% in the past month. In that same time, the Computer and Technology sector lost 0.53%, while the S&P 500 gained 1.61%.
Market participants will be closely following the financial results of Zoom Communications in its upcoming release. It is anticipated that the company will report an EPS of $1.49, marking a 2.61% fall compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $1.27 billion, reflecting a 4.22% rise from the equivalent quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $6.06 per share and a revenue of $5.09 billion, representing changes of +2.36% and +4.54%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Zoom Communications. 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 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. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Zoom Communications presently features a Zacks Rank of #3 (Hold).
With respect to valuation, Zoom Communications is currently being traded at a Forward P/E ratio of 15.04. This expresses a discount compared to the average Forward P/E of 19.89 of its industry.
Investors should also note that ZM has a PEG ratio of 3.39 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. ZM's industry had an average PEG ratio of 1.06 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 92, which puts it in the top 38% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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 Communications, Inc. (ZM): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).