Zoom Communications (ZM) Increases Despite Market Slip: Here's What You Need to Know

Zoom Communications (ZM) closed at $68.05 in the latest trading session, marking a +0.44% move from the prior day. The stock exceeded the S&P 500, which registered a loss of 0.23% for the day. Elsewhere, the Dow lost 0.91%, while the tech-heavy Nasdaq added 0.1%.The the stock of video-conferencing company has fallen by 10.83% in the past month, leading the Computer and Technology sector's loss of 16.18% and the S&P 500's loss of 12.13%.The investment community will be paying close attention to the earnings performance of Zoom Communications in its upcoming release. The company is predicted to post an EPS of $1.30, indicating a 3.7% decline compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $1.17 billion, indicating a 2.1% growth compared to the corresponding quarter of the prior year.In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.37 per share and a revenue of $4.79 billion, indicating changes of -3.07% and +2.68%, respectively, from the former year.Investors should also note any recent changes to analyst estimates for Zoom Communications. Such recent modifications usually signify the changing landscape 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.Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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 1.62% higher. At present, Zoom Communications boasts a Zacks Rank of #2 (Buy).With respect to valuation, Zoom Communications is currently being traded at a Forward P/E ratio of 12.61. This indicates a discount in contrast to its industry's Forward P/E of 23.71.One should further note that ZM currently holds a PEG ratio of 7.98. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Internet - Software industry had an average PEG ratio of 1.77 as trading concluded yesterday.The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 82, placing it within the top 34% 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.Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant 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