Here's Why Zoom Video Communications (ZM) Gained But Lagged the Market Today

In the latest market close, Zoom Video Communications (ZM) reached $72.69, with a +0.21% movement compared to the previous day. The stock lagged the S&P 500's daily gain of 0.22%. On the other hand, the Dow registered a loss of 0.33%, and the technology-centric Nasdaq increased by 0.76%.Shares of the video-conferencing company witnessed a gain of 6.76% over the previous month, beating the performance of the Computer and Technology sector with its gain of 2.29% and the S&P 500's gain of 1.47%.The investment community will be closely monitoring the performance of Zoom Video Communications in its forthcoming earnings report. The company is forecasted to report an EPS of $1.30, showcasing a 0.78% upward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $1.16 billion, up 2.34% from the prior-year quarter.For the full year, the Zacks Consensus Estimates project earnings of $5.31 per share and a revenue of $4.64 billion, demonstrating changes of +1.92% and +2.43%, respectively, from the preceding year.It's also important for investors to be aware of any recent modifications to analyst estimates for Zoom Video Communications. These revisions help to show the ever-changing nature of 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 suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Right now, Zoom Video Communications possesses a Zacks Rank of #2 (Buy).Looking at its valuation, Zoom Video Communications is holding a Forward P/E ratio of 13.66. This indicates a discount in contrast to its industry's Forward P/E of 31.81.Investors should also note that ZM has a PEG ratio of 3.23 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Internet - Software stocks are, on average, holding a PEG ratio of 2.07 based on yesterday's closing prices.The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 66, putting it in the top 27% of all 250+ industries.The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>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 Video Communications, Inc. (ZM): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks