Zoom Communications (ZM) closed the most recent trading day at $79.24, moving -5.7% from the previous trading session. The stock fell short of the S&P 500, which registered a loss of 0.11% for the day. At the same time, the Dow lost 0.56%, and the tech-heavy Nasdaq gained 0.35%.
The video-conferencing company's shares have seen an increase of 12.13% over the last month, surpassing the Computer and Technology sector's gain of 0.88% and the S&P 500's gain of 0.51%.
Analysts and investors alike will be keeping a close eye on the performance of Zoom Communications in its upcoming earnings disclosure. The company's upcoming EPS is projected at $1.41, signifying a 1.40% drop compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.22 billion, indicating a 4.16% increase compared to the same quarter of the previous year.
ZM's full-year Zacks Consensus Estimates are calling for earnings of $5.87 per share and revenue of $5.06 billion. These results would represent year-over-year changes of -0.84% and +3.92%, respectively.
It's also important for investors to be aware of any recent modifications to analyst estimates for Zoom Communications. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Zoom Communications is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note Zoom Communications's current valuation metrics, including its Forward P/E ratio of 14.32. This valuation marks a discount compared to its industry average Forward P/E of 17.88.
We can also see that ZM currently has a PEG ratio of 3.23. 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 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 95, this industry ranks in the top 39% of all industries, numbering over 250.
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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Zoom Communications, Inc. (ZM): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).