Enter your email to get this report and avoid a high-yield dividend trap. Select to analyze similar companies using key performance metrics; select up to 4 stocks. Please bear with us as we address this and restore your personalized lists. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
While Zoom Video Communications currently has a “Hold” rating among analysts, top-rated analysts believe these five stocks are better buys. Over the last 30 days, the consensus EPS estimate for Elastic has been revised 0.7% down to the current level. Nevertheless, the company now has an Earnings ESP of -3.20%, reflecting a lower Most Accurate Estimate. Coming into today, shares of the video-conferencing company had gained 9.37% in the past month. In that same time, my favorite forex day trading strategy the Computer and Technology sector gained 0.18%, while the S&P 500 gained 0.62%.
When combined with a Zacks Rank of #4 (Sell), this Earnings ESP makes it difficult to conclusively predict that Elastic will beat the consensus EPS estimate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Over the last four quarters, the company has beaten consensus EPS estimates four times. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model’s predictive power is significant for positive ESP readings only. Estimate revisions daily chart trading strategies ahead of a company’s earnings release offer clues to the business conditions for the period whose results are coming out.
Has Zoom (ZM) ever split its stock?
Right now, Zoom Video Communications possesses a Zacks Rank of #2 (Buy). Zoom Video reported revenues of $1.16 billion in the last reported quarter, representing a year-over-year change of +2.1%. In the case of Zoom Video, the consensus sales estimate of $1.16 billion for the current quarter points to a year-over-year change of +2.3%.
Research Analysis: ZM
Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements. Deutsche Bank Aktiengesellschaft lifted their price objective on Zoom Video Communications from $71.00 to $75.00 and gave the stock a “hold” rating in a research report on Friday, August 23rd. Robert W. Baird lowered their price target on Zoom Video Communications from $84.00 to $77.00 and set an “outperform” rating for the company in a research report on Thursday, August 22nd. Stifel Nicolaus lifted their price target on shares of Zoom Video Communications from $65.00 to $70.00 and gave the stock a “hold” rating in a research note on Thursday, October 10th. Needham & Company LLC restated a “hold” rating on shares of Zoom Video Communications in a research report on Friday, October 11th. Finally, Scotiabank raised shares of Zoom Video Communications to a “hold” rating in a research report on Tuesday.
Two investment analysts have rated the stock with a sell rating, fourteen have issued a hold rating and six have assigned a buy rating to the company. According to data from MarketBeat, Zoom Video Communications presently has a consensus rating of “Hold” and a consensus target price of $76.26. A number of other hedge funds have also bought and sold shares of ZM. AQR Capital Management LLC raised its holdings in shares of Zoom Video Communications by 78.5% in the 2nd quarter.
What sector and industry does Zoom Video Comms (ZM) operate in?
- The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate.
- Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
- Ark Invest has backed estimates up by taking a significant position in the media stock.
- The company is headquartered in San Jose, Calif., and has additional offices in more than 15 locations in the United States, Europe, Asia, and Australia.
- Zoom Video Communications Inc. (ZM) offers a video-first communications platform used by millions of people worldwide for both business and personal use.
Our experts picked 7 Zacks Rank #1 Strong Buy stocks with the best chance to skyrocket within the next days. Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services. As of Aug. 23, 2021, Zoom had 240,744,533 outstanding shares of Class A common stock and 56,383,369 outstanding shares of Class B common stock.
This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should also note any recent changes to analyst estimates for Zoom Video Communications. Such recent modifications usually signify the changing landscape of near-term business trends.
Here at Zacks, we prioritize appraising the lessons in corporate finance change in the projection of a company’s future earnings over anything else. That’s because we believe the present value of its future stream of earnings is what determines the fair value for its stock. The average prediction of analysts places ‘Geographic Revenue- Americas’ at $833.77 million. The one area of modest strength is non-GAAP (adjusted) free cash flow, which increased almost 14% yearly to more than $1.1 billion in the first three quarters of 2023. That was not enough to persuade investors to buy Zoom stock, as it is up just 1% from year-ago levels.