Zoom Video Communications (ZM) closed at $105.44 in the latest trading session, marking a +1.45% move from the prior day. This move outpaced the S&P 500's daily loss of 0.38%. Meanwhile, the Dow lost 0.44%, and the Nasdaq, a tech-heavy index, lost 0.67%.
Heading into today, shares of the video-conferencing company had gained 37.46% over the past month, outpacing the Computer and Technology sector's gain of 3.8% and the S&P 500's gain of 1.91% in that time.
Wall Street will be looking for positivity from ZM as it approaches its next earnings report date. This is expected to be March 4, 2020.
Investors should also note any recent changes to analyst estimates for ZM. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection remained stagnant. ZM is currently a Zacks Rank #3 (Hold).
Digging into valuation, ZM currently has a Forward P/E ratio of 381.08. Its industry sports an average Forward P/E of 53.82, 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 industry currently has a Zacks Industry Rank of 103, which puts it in the top 41% 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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