Zoom Communications (ZM) closed the most recent trading day at $85.78, moving +1.33% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.03%. Elsewhere, the Dow lost 0.58%, while the tech-heavy Nasdaq added 0.28%.
Coming into today, shares of the video-conferencing company had lost 3.58% in the past month. In that same time, the Computer and Technology sector gained 0.43%, while the S&P 500 gained 0.6%.
Analysts and investors alike will be keeping a close eye on the performance of Zoom Communications in its upcoming earnings disclosure. The company is forecasted to report an EPS of $1.48, showcasing a 4.96% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.23 billion, up 4.08% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $5.96 per share and a revenue of $4.85 billion, signifying shifts of +7.58% and +3.99%, respectively, from the last year.
Investors might also notice recent changes 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 suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Zoom Communications is holding a Zacks Rank of #1 (Strong Buy) right now.
Looking at its valuation, Zoom Communications is holding a Forward P/E ratio of 14.2. This indicates a discount in contrast to its industry's Forward P/E of 23.85.
We can also see that ZM currently has a PEG ratio of 4.95. 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 1.4 at the close of the market yesterday.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 69, which puts it in the top 29% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Zoom Communications, Inc. (ZM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
