Zoom Communications (ZM) Stock Drops Despite Market Gains: Important Facts to Note

In the latest market close, Zoom Communications (ZM) reached $85.17, with a -0.04% movement compared to the previous day. The stock's change was less than the S&P 500's daily gain of 0.24%. At the same time, the Dow added 0.16%, and the tech-heavy Nasdaq gained 0.08%.Prior to today's trading, shares of the video-conferencing company had gained 8.48% over the past month. This has outpaced the Computer and Technology sector's gain of 1.76% and the S&P 500's gain of 2.37% in that time.The upcoming earnings release of Zoom Communications will be of great interest to investors. The company's earnings report is expected on February 24, 2025. The company is expected to report EPS of $1.31, down 7.75% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $1.18 billion, reflecting a 2.77% rise from the equivalent quarter last year.Investors should also pay attention to any latest changes in analyst estimates for Zoom Communications. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Currently, Zoom Communications is carrying a Zacks Rank of #3 (Hold).Investors should also note Zoom Communications's current valuation metrics, including its Forward P/E ratio of 16.11. For comparison, its industry has an average Forward P/E of 29.86, which means Zoom Communications is trading at a discount to the group.Investors should also note that ZM has a PEG ratio of 2.97 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Internet - Software industry had an average PEG ratio of 2.14 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 33% of over 250 industries.The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.You can find more information on all of these metrics, and much more, on Zacks.com.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 ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks