Zendesk (ZEN) closed the most recent trading day at $84.88, moving -1.52% from the previous trading session. This move was narrower than the S&P 500's daily loss of 1.57%. At the same time, the Dow lost 1.57%, and the tech-heavy Nasdaq lost 1.89%.
Coming into today, shares of the customer-service software maker had gained 11.04% in the past month. In that same time, the Computer and Technology sector gained 6.01%, while the S&P 500 gained 2.35%.
Investors will be hoping for strength from ZEN as it approaches its next earnings release, which is expected to be February 6, 2020. The company is expected to report EPS of $0.11, up 10% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $227.68 million, up 32.18% from the year-ago period.
Any recent changes to analyst estimates for ZEN should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 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. The Zacks Consensus EPS estimate remained stagnant within the past month. ZEN is currently sporting a Zacks Rank of #2 (Buy).
Looking at its valuation, ZEN is holding a Forward P/E ratio of 147.33. For comparison, its industry has an average Forward P/E of 57.91, which means ZEN is trading at a premium to the group.
It is also worth noting that ZEN currently has a PEG ratio of 4.99. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ZEN's industry had an average PEG ratio of 2.68 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 97, which puts it in the top 39% 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.
To follow ZEN in the coming trading sessions, be sure to utilize Zacks.com.
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