Zoom Communications (ZM) closed the most recent trading day at $79.17, moving -1.38% from the previous trading session. The stock's change was less than the S&P 500's daily gain of 1.56%. At the same time, the Dow added 1.29%, and the tech-heavy Nasdaq gained 2.21%.
The video-conferencing company's shares have seen a decrease of 4.41% over the last month, not keeping up with the Computer and Technology sector's gain of 1.06% and the S&P 500's gain of 0.41%.
The upcoming earnings release of Zoom Communications will be of great interest to investors. In that report, analysts expect Zoom Communications to post earnings of $1.43 per share. This would mark year-over-year growth of 3.62%. Simultaneously, our latest consensus estimate expects the revenue to be $1.21 billion, showing a 3.02% escalation compared to the year-ago quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $5.83 per share and a revenue of $4.83 billion, representing changes of +5.23% and +3.43%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Zoom Communications. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, 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 has moved 2.1% higher. Zoom Communications is currently sporting a Zacks Rank of #1 (Strong Buy).
Looking at valuation, Zoom Communications is presently trading at a Forward P/E ratio of 13.76. This expresses a discount compared to the average Forward P/E of 28.54 of its industry.
We can additionally observe that ZM currently boasts a PEG ratio of 6.85. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Internet - Software stocks are, on average, holding a PEG ratio of 2.09 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 77, placing it within the top 32% of over 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Zoom Communications, Inc. (ZM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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