Zoom Video Communications (ZM) Ascends But Remains Behind Market: Some Facts to Note
Zoom Video Communications (ZM) closed the most recent trading day at $61.35, moving +0.05% from the previous trading session. The stock's performance was behind the S&P 500's daily gain of 0.13%. Elsewhere, the Dow gained 0.13%, while the tech-heavy Nasdaq lost 0.32%.
Shares of the video-conferencing company witnessed a loss of 11.94% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 2.15% and the S&P 500's gain of 2.99%.
Investors will be eagerly watching for the performance of Zoom Video Communications in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on February 26, 2024. In that report, analysts expect Zoom Video Communications to post earnings of $1.15 per share. This would mark a year-over-year decline of 5.74%. Our most recent consensus estimate is calling for quarterly revenue of $1.13 billion, up 0.96% from the year-ago period.
Investors should also note any recent changes to analyst estimates for Zoom Video Communications. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Zoom Video Communications is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Zoom Video Communications is currently trading at a Forward P/E ratio of 13.23. This denotes a discount relative to the industry's average Forward P/E of 31.67.
Investors should also note that ZM has a PEG ratio of 0.4 right now. 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. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 1.85.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 79, putting it in the top 32% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Zoom Video Communications, Inc. (ZM) : Free Stock Analysis Report
