Zoom Video Communications (ZM) Stock Moves -0.04%: What You Should Know

·3-min read

In the latest trading session, Zoom Video Communications (ZM) closed at $68.54, marking a -0.04% move from the previous day. This move was narrower than the S&P 500's daily loss of 0.16%. Elsewhere, the Dow lost 0.12%, while the tech-heavy Nasdaq lost 3.64%.

Coming into today, shares of the video-conferencing company had lost 6.99% in the past month. In that same time, the Computer and Technology sector gained 6.7%, while the S&P 500 gained 0.07%.

Wall Street will be looking for positivity from Zoom Video Communications as it approaches its next earnings report date. The company is expected to report EPS of $0.99, down 3.88% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.08 billion, up 0.91% from the year-ago period.

ZM's full-year Zacks Consensus Estimates are calling for earnings of $4.20 per share and revenue of $4.44 billion. These results would represent year-over-year changes of -3.89% and +1.18%, respectively.

Any recent changes to analyst estimates for Zoom Video Communications should also be noted by investors. 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 shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 31.15% higher within the past month. Zoom Video Communications is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, Zoom Video Communications is currently trading at a Forward P/E ratio of 16.34. For comparison, its industry has an average Forward P/E of 46.05, which means Zoom Video Communications is trading at a discount to the group.

Also, we should mention that ZM has a PEG ratio of 0.65. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. ZM's industry had an average PEG ratio of 1.71 as of yesterday's close.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 59, putting it in the top 24% of all 250+ industries.

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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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