Zoom Communications (ZM) closed at $79.46 in the latest trading session, marking a -0.55% move from the prior day. The stock exceeded the S&P 500, which registered a loss of 1.54% for the day. On the other hand, the Dow registered a loss of 1.63%, and the technology-centric Nasdaq decreased by 1.63%.
Heading into today, shares of the video-conferencing company had lost 8.21% over the past month, lagging the Computer and Technology sector's gain of 0.11% and the S&P 500's loss of 2.2% in that time.
The upcoming earnings release of Zoom Communications will be of great interest to investors. On that day, Zoom Communications is projected to report earnings of $1.31 per share, which would represent a year-over-year decline of 7.75%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.18 billion, up 2.77% from the year-ago period.
ZM's full-year Zacks Consensus Estimates are calling for earnings of $5.43 per share and revenue of $4.66 billion. These results would represent year-over-year changes of +4.22% and +2.87%, respectively.
It's also important for investors to be aware of any recent modifications to analyst estimates for Zoom Communications. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.89% higher. Zoom Communications presently features a Zacks Rank of #1 (Strong Buy).
With respect to valuation, Zoom Communications is currently being traded at a Forward P/E ratio of 14.71. This indicates a discount in contrast to its industry's Forward P/E of 28.07.
One should further note that ZM currently holds a PEG ratio of 2.71. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Internet - Software industry had an average PEG ratio of 2.18 as trading concluded yesterday.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 29, finds itself in the top 12% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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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