Yahoo Finance Zoom Video Communications (ZM) Outpaces Stock Market Gains: What You Should Know
Zoom Video Communications (ZM) closed at $62.83 in the latest trading session, marking a +1.98% move from the prior day. This move outpaced the S&P 500's daily gain of 0.91%. On the other hand, the Dow registered a gain of 0.85%, and the technology-centric Nasdaq increased by 1.51%.
Heading into today, shares of the video-conferencing company had lost 2.55% over the past month, outpacing the Computer and Technology sector's loss of 4.63% and the S&P 500's loss of 4.2% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Zoom Video Communications in its upcoming earnings disclosure. The company's earnings report is set to go public on May 20, 2024. The company is forecasted to report an EPS of $1.19, showcasing a 2.59% upward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $1.13 billion, up 1.81% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $4.89 per share and revenue of $4.6 billion, which would represent changes of -6.14% and +1.64%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Zoom Video 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.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Zoom Video Communications is holding a Zacks Rank of #2 (Buy) right now.
Investors should also note Zoom Video Communications's current valuation metrics, including its Forward P/E ratio of 12.59. Its industry sports an average Forward P/E of 29.48, so one might conclude that Zoom Video Communications is trading at a discount comparatively.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 70, this industry ranks in the top 28% of all industries, numbering over 250.
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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Zoom Video Communications, Inc. (ZM) : Free Stock Analysis Report