In the latest trading session, Zoom Communications (ZM) closed at $96.20, marking a -3.26% move from the previous day. The stock's change was less than the S&P 500's daily loss of 1.21%. On the other hand, the Dow registered a gain of 0.02%, and the technology-centric Nasdaq decreased by 2.6%.
Shares of the video-conferencing company witnessed a gain of 8.2% over the previous month, beating the performance of the Computer and Technology sector with its loss of 3.87%, and the S&P 500's loss of 0.03%.
Investors will be eagerly watching for the performance of Zoom Communications in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $1.5, reflecting a 1.32% decrease from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $1.28 billion, up 3.98% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $6.24 per share and a revenue of $5.09 billion, representing changes of +5.41% and +4.58%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Zoom Communications. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Zoom Communications is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Zoom Communications is presently being traded at a Forward P/E ratio of 15.95. Its industry sports an average Forward P/E of 20.59, so one might conclude that Zoom Communications is trading at a discount comparatively.
We can also see that ZM currently has a PEG ratio of 3.14. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The average PEG ratio for the Internet - Software industry stood at 1.25 at the close of the market yesterday.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 76, putting it in the top 31% of all 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.
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
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