Zoom Video Communications (ZM) ended the recent trading session at $74.74, demonstrating a -0.05% swing from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily loss of 1.86%. Elsewhere, the Dow lost 0.9%, while the tech-heavy Nasdaq lost 2.76%.

Prior to today's trading, shares of the video-conferencing company had gained 10.6% over the past month. This has outpaced the Computer and Technology sector's gain of 3.02% and the S&P 500's gain of 1.01% in that time.

Market participants will be closely following the financial results of Zoom Video Communications in its upcoming release. The company plans to announce its earnings on November 25, 2024. The company is predicted to post an EPS of $1.30, indicating a 0.78% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $1.16 billion, up 2.34% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $5.31 per share and revenue of $4.64 billion, which would represent changes of +1.92% and +2.43%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Zoom Video Communications. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Zoom Video Communications is currently a Zacks Rank #1 (Strong Buy).

Looking at valuation, Zoom Video Communications is presently trading at a Forward P/E ratio of 14.08. This denotes a discount relative to the industry's average Forward P/E of 32.38.

It's also important to note that ZM currently trades at a PEG ratio of 3.33. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Internet - Software industry currently had an average PEG ratio of 2.21 as of yesterday's close.