In the latest trading session, Zoom Video Communications (ZM) closed at $93.38, marking a -1.9% move from the previous day. This change lagged the S&P 500's 0.62% loss on the day. At the same time, the Dow lost 0.25%, and the tech-heavy Nasdaq lost 0.74%.
Coming into today, shares of the video-conferencing company had lost 6.95% in the past month. In that same time, the Computer and Technology sector gained 3.47%, while the S&P 500 gained 2.8%.
Investors will be hoping for strength from ZM as it approaches its next earnings release.
Investors should also note any recent changes to analyst estimates for ZM. 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.
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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. ZM currently has a Zacks Rank of #2 (Buy).
Digging into valuation, ZM currently has a Forward P/E ratio of 5354.44. Its industry sports an average Forward P/E of 65.02, so we one might conclude that ZM is trading at a premium comparatively.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 60, putting it in the top 24% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Zoom Video Communications, Inc. (ZM) : Free Stock Analysis Report
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