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Zoom Video Communications, Inc. (ZM) closed the most recent trading day at $384.53, moving +0.34% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.72%. Elsewhere, the Dow lost 0.57%, while the tech-heavy Nasdaq lost 0.87%.
Prior to today's trading, shares of the company had lost 4.58% over the past month. This has lagged the Computer and Technology sector's gain of 4.37% and the S&P 500's gain of 4.69% in that time.
Wall Street will be looking for positivity from ZM as it approaches its next earnings report date. The company is expected to report EPS of $0.78, up 420% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $809.07 million, up 329.78% from the year-ago period.
ZM's full-year Zacks Consensus Estimates are calling for earnings of $2.89 per share and revenue of $2.58 billion. These results would represent year-over-year changes of +725.71% and +314.03%, respectively.
It is also important to note the recent changes to analyst estimates for ZM. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 has moved 1.08% higher within the past month. ZM currently has a Zacks Rank of #3 (Hold).
In terms of valuation, ZM is currently trading at a Forward P/E ratio of 132.52. For comparison, its industry has an average Forward P/E of 84.71, which means ZM is trading at a premium to the group.
Also, we should mention that ZM has a PEG ratio of 5.3. 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. Internet - Software stocks are, on average, holding a PEG ratio of 4.34 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 178, putting it in the bottom 31% 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.
To follow ZM in the coming trading sessions, be sure to utilize Zacks.com.
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Zoom Video Communications, Inc. (ZM) : Free Stock Analysis Report
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