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Zoom's performance lags behind major indices, analysts remain optimistic

EditorMalvika Gurung
Published 2023-10-17, 02:24 a/m
© Pavlo Gonchar / SOPA Images/Sipa via Reuters Connect
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On Monday, Zoom Video Communications (NASDAQ:ZM) saw a marginal increase of 0.69%, closing at $63.18 per share. This trailed behind the S&P 500, Dow, and Nasdaq which gained 1.06%, 0.93% and 1.2% respectively. Over the past month, Zoom's shares have shed 11.15%, underperforming both the Computer and Technology sector and the S&P 500.

InvestingPro's real-time metrics highlight that Zoom has a market cap of $19.12 billion and a P/E ratio of 132.03.

Analysts are maintaining an optimistic outlook for the company's financial results. Zacks Consensus Estimates foresee a year-over-year (YoY) rise of 0.93% in earnings per share (EPS), with an anticipated EPS of $1.08. This reflects an upbeat sentiment about Zoom's business and profitability. According to InvestingPro Tips, Zoom is expected to see net income growth this year, which is in line with this forecast.

In terms of net sales, Zacks predicts an increase of 1.47% from the previous year, projecting figures around $1.12 billion. For the full fiscal year, earnings are expected to reach $4.66 per share with revenue totaling $4.49 billion, up 6.64% and 2.24%, respectively from the year ago.

These revisions in analyst estimates for Zoom reflect shifting business dynamics within the company.

The company operates within the Internet - Software industry of the Computer and Technology sector, which currently ranks in the top 28% of over 250 industries according to Zacks Industry Rank.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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