Yahoo Finance Zoom Video Communications (ZM) Rises Higher Than Market: Key Facts
Zoom Video Communications (ZM) closed at $62 in the latest trading session, marking a +1.57% move from the prior day. The stock outperformed the S&P 500, which registered a daily gain of 1.02%. At the same time, the Dow added 0.4%, and the tech-heavy Nasdaq gained 2.03%.
Prior to today's trading, shares of the video-conferencing company had lost 6.62% over the past month. This has lagged the Computer and Technology sector's loss of 5.32% and the S&P 500's loss of 3.15% in that time.
The investment community will be paying close attention to the earnings performance of Zoom Video Communications in its upcoming release. On that day, Zoom Video Communications is projected to report earnings of $1.19 per share, which would represent year-over-year growth of 2.59%. In the meantime, our current consensus estimate forecasts the revenue to be $1.13 billion, indicating a 1.81% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $4.89 per share and a revenue of $4.6 billion, demonstrating changes of -6.14% and +1.64%, respectively, from the preceding year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Zoom Video Communications. Recent revisions tend to reflect the latest 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 reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Zoom Video Communications presently features a Zacks Rank of #2 (Buy).
Looking at valuation, Zoom Video Communications is presently trading at a Forward P/E ratio of 12.47. This signifies a discount in comparison to the average Forward P/E of 28.63 for its industry.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 62, putting it in the top 25% 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.
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
