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Zoom Communications (ZM) Sees a More Significant Dip Than Broader Market: Some Facts to Know
ZACKS· 2026-01-29 23:46
Company Performance - Zoom Communications closed at $92.58, reflecting a -3.78% change from the previous day, underperforming the S&P 500's daily loss of 0.13% [1] - Over the past month, shares of Zoom have increased by 11.51%, while the Computer and Technology sector gained 1.88% and the S&P 500 gained 0.78% [1] Upcoming Earnings - The upcoming earnings disclosure is anticipated to show an EPS of $1.48, indicating a 4.96% growth compared to the same quarter last year [2] - Revenue is projected to be $1.23 billion, reflecting a 4.08% increase from the equivalent quarter last year [2] Full Year Projections - For the full year, earnings are projected at $5.96 per share and revenue at $4.85 billion, showing changes of +7.58% and +4% respectively from the previous year [3] - Recent revisions to analyst forecasts are important as they reflect short-term business trends, with positive revisions indicating a favorable business outlook [3] Valuation Metrics - Zoom Communications has a Forward P/E ratio of 16.14, which is lower than the industry's Forward P/E of 23.25, indicating a valuation discount [6] - The current PEG ratio for Zoom is 5.62, compared to the average PEG ratio of 1.38 for the Internet - Software industry [6] Industry Context - The Internet - Software industry is part of the Computer and Technology sector and currently holds a Zacks Industry Rank of 80, placing it in the top 33% of over 250 industries [7] - The Zacks Industry Rank assesses the strength of industry groups, with the top 50% rated industries outperforming the bottom half by a factor of 2 to 1 [7] Zacks Rank - Zoom Communications has a Zacks Rank of 2 (Buy), with the Zacks Consensus EPS estimate remaining stagnant over the past month [5]