Zoom Communications (ZM) closed the most recent trading day at $71.98, moving +0.9% from the previous trading session. This change outpaced the S&P 500's 0.79% gain on the day. Elsewhere, the Dow saw an upswing of 0.78%, while the tech-heavy Nasdaq appreciated by 0.64%.
Prior to today's trading, shares of the video-conferencing company had lost 3.85% over the past month. This has was narrower than the Computer and Technology sector's loss of 4.81% and lagged the S&P 500's loss of 3.56% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Zoom Communications in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $1.30, marking a 3.7% fall compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $1.17 billion, reflecting a 2.1% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $5.38 per share and revenue of $4.79 billion, which would represent changes of -2.89% and +2.68%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Zoom Communications. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.33% higher. As of now, Zoom Communications holds a Zacks Rank of #2 (Buy).
In the context of valuation, Zoom Communications is at present trading with a Forward P/E ratio of 13.27. This valuation marks a discount compared to its industry's average Forward P/E of 25.02.
One should further note that ZM currently holds a PEG ratio of 8.4. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Internet - Software industry held an average PEG ratio of 1.85.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 91, positioning it in the top 37% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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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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