Zoom Video Communications (ZM) ended the recent trading session at $69.43, demonstrating a +0.93% swing from the preceding day's closing price. The stock exceeded the S&P 500, which registered a gain of 0.25% for the day. Elsewhere, the Dow saw an upswing of 0.2%, while the tech-heavy Nasdaq appreciated by 0.56%.

Shares of the video-conferencing company have depreciated by 3.55% over the course of the past month, underperforming the Computer and Technology sector's loss of 0.11% and the S&P 500's gain of 1.65%.

The investment community will be closely monitoring the performance of Zoom Video Communications in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $1.30, reflecting a 0.78% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $1.16 billion, reflecting a 2.32% rise from the equivalent quarter last year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $5.31 per share and revenue of $4.64 billion. These totals would mark changes of +1.92% and +2.42%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Zoom Video Communications. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.82% increase. Zoom Video Communications is currently a Zacks Rank #3 (Hold).

In terms of valuation, Zoom Video Communications is presently being traded at a Forward P/E ratio of 12.95. This expresses a discount compared to the average Forward P/E of 31.07 of its industry.

One should further note that ZM currently holds a PEG ratio of 3.06. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Software industry currently had an average PEG ratio of 2.05 as of yesterday's close.

The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 73, placing it within the top 29% of over 250 industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Zoom Video Communications, Inc. (ZM) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research