Zoom Communications (ZM) Stock Declines While Market Improves: Some Information for Investors

Zoom Communications (ZM) closed the most recent trading day at $79.17, moving -1.38% from the previous trading session. The stock's change was less than the S&P 500's daily gain of 1.56%. At the same time, the Dow added 1.29%, and the tech-heavy Nasdaq gained 2.21%. The video-conferencing company's shares have seen a decrease of 4.41% over the last month, not keeping up with the Computer and Technology sector's gain of 1.06% and the S&P 500's gain of 0.41%.The upcoming earnings release of Zoom Communications will be of great interest to investors. In that report, analysts expect Zoom Communications to post earnings of $1.43 per share. This would mark year-over-year growth of 3.62%. Simultaneously, our latest consensus estimate expects the revenue to be $1.21 billion, showing a 3.02% escalation compared to the year-ago quarter. For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $5.83 per share and a revenue of $4.83 billion, representing changes of +5.23% and +3.43%, respectively, from the prior year. It's also important for investors to be aware of any recent modifications to analyst estimates for Zoom Communications. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability. Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, 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. Within the past 30 days, our consensus EPS projection has moved 2.1% higher. Zoom Communications is currently sporting a Zacks Rank of #1 (Strong Buy). Looking at valuation, Zoom Communications is presently trading at a Forward P/E ratio of 13.76. This expresses a discount compared to the average Forward P/E of 28.54 of its industry. We can additionally observe that ZM currently boasts a PEG ratio of 6.85. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Internet - Software stocks are, on average, holding a PEG ratio of 2.09 based on yesterday's closing prices. The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 77, placing it within the top 32% of over 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. Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions. Radical New Technology Could Hand Investors Huge GainsQuantum Computing is the next technological revolution, and it could be even more advanced than AI.While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.See Top Quantum Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Zoom Communications, Inc. (ZM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks