Zoom Video Communications (ZM) closed at $82.59 in the last trading session, a movement of -1.09% on the previous day. That move lagged the S&P 500’s 0.31% drop on the day. At the same time, the Dow lost 0.02% and the tech-heavy Nasdaq lost 0.12%.
As of today, shares of the video conferencing company are up 9.39% over the past month. At the same time, the computer and technology sector gained 10.58%, while the S&P 500 gained 10.62%.
Investors will be looking for strength from Zoom Video Communications as it approaches its next earnings release, which is expected on November 21, 2022. On that date, Zoom Video Communications is expected to report earnings of $0.84 per share, which would translate to a year-on-year decline of 24.32% year-on-year. Meanwhile, our most recent consensus estimate calls for revenue of $1.1 billion, up 4.44% from the year-ago quarter.
ZM’s full-year Zacks Consensus estimates call for earnings per share of $3.72 on sales of $4.39 billion. These results would represent annual changes of -26.63% and +6.98%, respectively.
Any recent changes in analyst estimates for Zoom Video Communications should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, we can interpret positive estimate revisions as a good sign for the company’s business prospects.
Research shows that these estimate revisions correlate directly to short-term stock price dynamics. To take advantage of this, we developed the Zacks Rank, a proprietary model that accounts for these changes in estimates and provides an actionable scoring system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, third-party verified track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved up 0.99%. Zoom Video Communications currently holds a Zacks rank of #3 (hold).
Looking at valuation, Zoom Video Communications currently has a forward P/E of 22.43. This valuation marks a discount to the industry’s average forward P/E of 45.51.
Meanwhile, ZM’s PEG ratio is currently 1.15. This metric is used in a similar way to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. The Internet software held an average PEG ratio of 2.5 at yesterday’s close.
The internet software industry is part of the computer and technology industry. This group has a Zacks Industry Rank of 67, placing it in the top 27% of all 250+ industries.
Zacks Industry Rank measures the strength of each of our industry groups by measuring the average Zacks Rank of each stock within the groups. Our research shows that the top 50% of industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all these stock movement metrics and many more at Zacks.com.
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Zoom Video Communications, Inc. (ZM): Free Stock Research Report
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