Zoom Video Communications (ZM) closed at $59.45 in the latest trading session, marking a -0.82% move from the prior day. The stock's performance was ahead of the S&P 500's daily loss of 0.88%. Meanwhile, the Dow gained 0.56%, and the Nasdaq, a tech-heavy index, lost 2.05%.

The video-conferencing company's stock has dropped by 9.92% in the past month, falling short of the Computer and Technology sector's loss of 3.33% and the S&P 500's loss of 2.57%.

The investment community will be paying close attention to the earnings performance of Zoom Video Communications in its upcoming release. It is anticipated that the company will report an EPS of $1.19, marking a 2.59% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $1.13 billion, up 1.81% from the year-ago period.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $4.89 per share and a revenue of $4.6 billion, representing changes of -6.14% and +1.64%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Zoom Video Communications. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Currently, Zoom Video Communications is carrying a Zacks Rank of #2 (Buy).

With respect to valuation, Zoom Video Communications is currently being traded at a Forward P/E ratio of 12.25. This expresses a discount compared to the average Forward P/E of 27.78 of its industry.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 53, putting it in the top 22% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

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