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VMware (VMW) closed at $110.32 in the latest trading session, marking a -0.79% move from the prior day. This change was narrower than the S&P 500's 1.48% loss on the day. Meanwhile, the Dow lost 1.05%, and the Nasdaq, a tech-heavy index, lost 0.09%.
Prior to today's trading, shares of the cloud computing company had lost 4.4% over the past month. This has was narrower than the Computer and Technology sector's loss of 5.18% and lagged the S&P 500's gain of 0.08% in that time.
Investors will be hoping for strength from VMware as it approaches its next earnings release. In that report, analysts expect VMware to post earnings of $1.57 per share. This would mark a year-over-year decline of 10.8%. Meanwhile, our latest consensus estimate is calling for revenue of $3.19 billion, up 6.42% from the prior-year quarter.
VMW's full-year Zacks Consensus Estimates are calling for earnings of $7.03 per share and revenue of $13.74 billion. These results would represent year-over-year changes of -3.03% and +6.95%, respectively.
Investors should also note any recent changes to analyst estimates for VMware. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. VMware is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note VMware's current valuation metrics, including its Forward P/E ratio of 15.82. Its industry sports an average Forward P/E of 29.62, so we one might conclude that VMware is trading at a discount comparatively.
Meanwhile, VMW's PEG ratio is currently 1.26. 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 Computer - Software was holding an average PEG ratio of 2.39 at yesterday's closing price.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 168, putting it in the bottom 34% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
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