Zoom Communications (ZM) closed at $94.48 in the latest trading session, marking a -3.75% move from the prior day. The stock's change was less than the S&P 500's daily loss of 1.11%. At the same time, the Dow lost 0.09%, and the tech-heavy Nasdaq lost 1.88%.
Coming into today, shares of the video-conferencing company had gained 5.47% in the past month. In that same time, the Computer and Technology sector gained 3.49%, while the S&P 500 gained 2.06%.
The upcoming earnings release of Zoom Communications will be of great interest to investors. The company's earnings per share (EPS) are projected to be $1.5, reflecting a 1.32% decrease from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $1.28 billion, up 3.99% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $6.24 per share and a revenue of $5.09 billion, signifying shifts of +5.41% and +4.58%, respectively, from the last year.
Investors should also take note of any recent adjustments to analyst estimates for Zoom Communications. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. At present, Zoom Communications boasts a Zacks Rank of #3 (Hold).
With respect to valuation, Zoom Communications is currently being traded at a Forward P/E ratio of 15.74. This indicates a discount in contrast to its industry's Forward P/E of 20.8.
Meanwhile, ZM's PEG ratio is currently 3.1. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 1.19.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 79, putting it in the top 33% 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Zoom Communications, Inc. (ZM): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).