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Zoom Video Communications, Inc. (ZM) closed at $382.81 in the latest trading session, marking no change from the prior day. This change lagged the S&P 500's 0.03% gain on the day. Elsewhere, the Dow lost 0.04%, while the tech-heavy Nasdaq added 0.55%.
Prior to today's trading, shares of the company had lost 0.28% over the past month. This has lagged the Computer and Technology sector's gain of 5.24% and the S&P 500's gain of 3.99% 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. Meanwhile, our latest consensus estimate is calling for revenue of $809.07 million, up 329.78% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.89 per share and revenue of $2.58 billion. These totals would mark changes of +725.71% and +314.03%, respectively, from last year.
Any recent changes to analyst estimates for ZM should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Over the past month, the Zacks Consensus EPS estimate has moved 1.08% higher. ZM currently has a Zacks Rank of #3 (Hold).
In terms of valuation, ZM is currently trading at a Forward P/E ratio of 132.37. For comparison, its industry has an average Forward P/E of 84.51, which means ZM is trading at a premium to the group.
It is also worth noting that ZM currently has a PEG ratio of 5.29. 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. Internet - Software stocks are, on average, holding a PEG ratio of 4.5 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 187, which puts it in the bottom 27% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Zoom Video Communications, Inc. (ZM) : Free Stock Analysis Report
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