In the latest market close, Zoom Video Communications (ZM) reached $72.69, with a +0.21% movement compared to the previous day. The stock lagged the S&P 500's daily gain of 0.22%. On the other hand, the Dow registered a loss of 0.33%, and the technology-centric Nasdaq increased by 0.76%.

Shares of the video-conferencing company witnessed a gain of 6.76% over the previous month, beating the performance of the Computer and Technology sector with its gain of 2.29% and the S&P 500's gain of 1.47%.

The investment community will be closely monitoring the performance of Zoom Video Communications in its forthcoming earnings report. The company is forecasted to report an EPS of $1.30, showcasing a 0.78% upward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $1.16 billion, up 2.34% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates project earnings of $5.31 per share and a revenue of $4.64 billion, demonstrating changes of +1.92% and +2.43%, respectively, from the preceding year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Zoom Video Communications. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Right now, Zoom Video Communications possesses a Zacks Rank of #2 (Buy).

Looking at its valuation, Zoom Video Communications is holding a Forward P/E ratio of 13.66. This indicates a discount in contrast to its industry's Forward P/E of 31.81.

Investors should also note that ZM has a PEG ratio of 3.23 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Internet - Software stocks are, on average, holding a PEG ratio of 2.07 based on yesterday's closing prices.