Zoom Communications (ZM) closed the latest trading day at $77.52, indicating a -0.04% change from the previous session's end. This move lagged the S&P 500's daily gain of 0.15%. Meanwhile, the Dow gained 0.35%, and the Nasdaq, a tech-heavy index, lost 0.09%.
Heading into today, shares of the video-conferencing company had gained 4.77% over the past month, outpacing the Computer and Technology sector's gain of 1.15% and the S&P 500's loss of 0.21% in that time.
The investment community will be closely monitoring the performance of Zoom Communications in its forthcoming earnings report. On that day, Zoom Communications is projected to report earnings of $1.30 per share, which would represent a year-over-year decline of 3.7%. At the same time, our most recent consensus estimate is projecting a revenue of $1.16 billion, reflecting a 2.03% rise from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $5.36 per share and a revenue of $4.78 billion, signifying shifts of -3.25% and +2.35%, respectively, from the last year.
Investors should also take note of any recent adjustments to analyst estimates for Zoom Communications. These latest adjustments often mirror the shifting dynamics of short-term business patterns. 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. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 moved 0.73% lower. As of now, Zoom Communications holds a Zacks Rank of #3 (Hold).
From a valuation perspective, Zoom Communications is currently exchanging hands at a Forward P/E ratio of 14.47. This represents a discount compared to its industry's average Forward P/E of 26.51.
One should further note that ZM currently holds a PEG ratio of 9.16. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Software was holding an average PEG ratio of 2.15 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 141, positioning it in the bottom 44% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Zoom Communications, Inc. (ZM) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
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