Zoom Communications (ZM) Stock Sinks As Market Gains: What You Should Know

Zoom Communications (ZM) ended the recent trading session at $75.05, demonstrating a -3.01% change from the preceding day's closing price. The stock's change was less than the S&P 500's daily gain of 0.28%. On the other hand, the Dow registered a gain of 0.43%, and the technology-centric Nasdaq increased by 0.09%. Shares of the video-conferencing company have depreciated by 1% over the course of the past month, underperforming the Computer and Technology sector's gain of 6.2%, and the S&P 500's gain of 4.37%.Market participants will be closely following the financial results of Zoom Communications in its upcoming release. The company is expected to report EPS of $1.37, down 1.44% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.2 billion, up 3.02% from the year-ago period. For the full year, the Zacks Consensus Estimates are projecting earnings of $5.59 per share and revenue of $4.81 billion, which would represent changes of +0.9% and +2.99%, respectively, from the prior year. It is also important to note the recent changes to analyst estimates for Zoom Communications. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability. Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system. The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.79% higher. As of now, Zoom Communications holds a Zacks Rank of #3 (Hold). In terms of valuation, Zoom Communications is presently being traded at a Forward P/E ratio of 13.85. This indicates a discount in contrast to its industry's Forward P/E of 29.03. It is also worth noting that ZM currently has a PEG ratio of 7.33. 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. ZM's industry had an average PEG ratio of 2.24 as of yesterday's close. The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 62, which puts it in the top 26% 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. To follow ZM in the coming trading sessions, be sure to utilize Zacks.com. Higher. Faster. Sooner. Buy These Stocks NowA small number of stocks are primed for a breakout, and you have a chance to get in before they take off.At any given time, there are only 220 Zacks Rank #1 Strong Buys. On average, this list more than doubles the S&P 500. We’ve combed through the latest Strong Buys and selected 7 compelling companies likely to jump sooner and climb higher than any other stock you could buy this month.You'll learn everything you need to know about these exciting trades in our brand-new Special Report, 7 Best Stocks for the Next 30 Days.Download the report free 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