In the latest trading session, Zoom Video Communications (ZM) closed at $70.52, marking a +0.46% move from the previous day. This move outpaced the S&P 500's daily gain of 0.4%. At the same time, the Dow added 0.09%, and the tech-heavy Nasdaq gained 0.63%.

Coming into today, shares of the video-conferencing company had gained 4.92% in the past month. In that same time, the Computer and Technology sector gained 4.88%, while the S&P 500 gained 3.76%.

Investors will be eagerly watching for the performance of Zoom Video Communications in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $1.31, reflecting a 1.55% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $1.16 billion, showing a 2.34% escalation compared to the year-ago quarter.

ZM's full-year Zacks Consensus Estimates are calling for earnings of $5.31 per share and revenue of $4.64 billion. These results would represent year-over-year changes of +1.92% and +2.43%, respectively.

It's also important for investors to be aware of any recent modifications to analyst estimates for Zoom Video Communications. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.54% increase. Currently, Zoom Video Communications is carrying a Zacks Rank of #1 (Strong Buy).

Looking at valuation, Zoom Video Communications is presently trading at a Forward P/E ratio of 13.22. Its industry sports an average Forward P/E of 32.25, so one might conclude that Zoom Video Communications is trading at a discount comparatively.

Investors should also note that ZM has a PEG ratio of 3.12 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. The Internet - Software industry currently had an average PEG ratio of 2.09 as of yesterday's close.