Zoom Communications (ZM) Outperforms Broader Market: What You Need to Know

Company Performance - Zoom Communications closed at $71.98, with a gain of +0.9%, outperforming the S&P 500's gain of 0.79% on the same day [1] - Over the past month, Zoom's shares have decreased by 3.85%, which is less than the Computer and Technology sector's loss of 4.81% and the S&P 500's loss of 3.56% [1] Upcoming Earnings - The company is expected to report an EPS of$ 1.30, reflecting a 3.7% decline compared to the same quarter last year [2] - Revenue is projected to be $1.17 billion, indicating a 2.1% increase from the equivalent quarter last year [2] Full Year Projections - For the full year, earnings are projected at$ 5.38 per share, representing a -2.89% change from the prior year, while revenue is expected to be $4.79 billion, reflecting a +2.68% change [3] Analyst Estimates - Recent changes to analyst estimates suggest a positive outlook for Zoom Communications, with positive revisions indicating optimism about the company's business prospects [4] - The Zacks Rank system, which reflects these estimate changes, currently ranks Zoom Communications at 2 (Buy) [6] Valuation Metrics - Zoom Communications has a Forward P/E ratio of 13.27, which is lower than the industry's average Forward P/E of 25.02 [7] - The company has a PEG ratio of 8.4, compared to the Internet - Software industry's average PEG ratio of 1.85 [7] Industry Context - The Internet - Software industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 91, placing it in the top 37% of over 250 industries [8] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]