Zoom Communications (ZM) Increases Yet Falls Behind Market: What Investors Need to Know

Zoom Communications (ZM) closed at $86.18 in the latest trading session, marking a +0.07% move from the prior day. The stock lagged the S&P 500's daily gain of 0.72%. Elsewhere, the Dow saw an upswing of 0.3%, while the tech-heavy Nasdaq appreciated by 1.35%.Shares of the video-conferencing company witnessed a gain of 4.59% over the previous month, beating the performance of the Computer and Technology sector with its loss of 1.35% and the S&P 500's gain of 1.02%.Analysts and investors alike will be keeping a close eye on the performance of Zoom Communications in its upcoming earnings disclosure. The company's earnings report is set to go public on February 24, 2025. The company is predicted to post an EPS of $1.31, indicating a 7.75% decline compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $1.18 billion, up 2.77% from the prior-year quarter.Investors should also pay attention to any latest changes in analyst estimates for Zoom Communications. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.Based on our research, we believe these estimate revisions are directly related to near-team 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.36% higher. As of now, Zoom Communications holds a Zacks Rank of #2 (Buy).In the context of valuation, Zoom Communications is at present trading with a Forward P/E ratio of 16.28. This represents a discount compared to its industry's average Forward P/E of 31.46.One should further note that ZM currently holds a PEG ratio of 3. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 2.27.The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 66, finds itself in the top 27% echelons 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.Research Chief Names "Single Best Pick to Double"From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. 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 ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks