Zoom Communications (ZM) closed the most recent trading day at $78.05, moving -0.23% from the previous trading session. The stock exceeded the S&P 500, which registered a loss of 0.77% for the day. Meanwhile, the Dow experienced a drop of 0.95%, and the technology-dominated Nasdaq saw a decrease of 0.87%.
Shares of the video-conferencing company have appreciated by 14.96% over the course of the past month, underperforming the Computer and Technology sector's gain of 16.73% and outperforming the S&P 500's gain of 11.54%.
Investors will be eagerly watching for the performance of Zoom Communications in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on May 21, 2025. On that day, Zoom Communications is projected to report earnings of $1.30 per share, which would represent a year-over-year decline of 3.7%. Our most recent consensus estimate is calling for quarterly revenue of $1.16 billion, up 2.03% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.36 per share and a revenue of $4.78 billion, indicating changes of -3.25% and +2.35%, respectively, from the former year.
Any recent changes to analyst estimates for Zoom Communications should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, there's been a 0.73% fall in the Zacks Consensus EPS estimate. Zoom Communications is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Zoom Communications is presently being traded at a Forward P/E ratio of 14.6. This signifies a discount in comparison to the average Forward P/E of 27.82 for its industry.
One should further note that ZM currently holds a PEG ratio of 9.24. 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 2.05.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 84, finds itself in the top 35% echelons 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.
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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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