So, as with other valuation metrics, it's a good idea to compare it to its relevant industry. All of those stocks are classified into three groups: Sector, M Industry and X Industry. Its Value Score of D indicates it would be a bad pick for value investors. Zoom Video Communications (ZM) came out with quarterly earnings of $0.92 per share, beating the Zacks Consensus Estimate of $0.45 per share. And margin rates can vary significantly across these different groups. ZM | Complete Zoom Video Communications Inc. stock news by MarketWatch. $397.45 Investment Research, Inc, licensed by Zacks Investment Research, Inc. from Zacks Investment Research. * Indicates the important links in the menu, After-Market: This represents a premium … The 20 day average establishes this baseline. Once again, cash flow is net income plus depreciation and other non-cash charges. Learn more about Zacks Equity Research reports. Pro, Business and Enterprise are offered at $14.99, $19.99 and $19.99, respectively, with maximum of 9, 10 and 100 hosts, respectively.Notably, as of Apr 30, 2020, the company had approximately 265.4K customers with more than 10 employees. This includes measuring aspects of the Income Statement, Statement of Cash Flows, the Balance Sheet, and more. This San Jose, CA-based company reported revenues of $622.7 million in fiscal 2020.The company generates revenues from the sale of subscriptions to its video-first communications platform. Get the latest broker recommendations from Zacks Investment Research. Volume is a useful item in many ways. NASDAQ data is at least 15 minutes delayed. The ever popular one-page Snapshot reports are generated for virtually every single Zacks Ranked stock. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZM: Zoom Video Communications, Inc. - Price and Consensus Chart. The Zacks Sector Rank assigns a rating to each of the 16 Sectors based on their average Zacks Rank. For example, a company with a P/E ratio of 25 and a growth rate of 20% would have a PEG ratio of 1.25 (25 / 20 = 1.25). This is a medium-term price change metric (like the 4 week price change). Zacks Rank Education -- Learn more about the Zacks Rank Historical EPS Growth Rate looks at the average annual (trailing 12 months) EPS growth rate over the last 3-5 years of actual earnings. Zacks Style Scores Education - Learn more about the Zacks Style Scores. The Style Scores are a complementary set of indicators to use alongside the Zacks Rank. Since bonds and stocks compete for investors' dollars, a higher yield typically needs to be paid to the stock investor for the extra risk being assumed vs. the virtual risk-free investment offered in U.S.-backed Treasuries. That means you want to buy stocks with a Zacks Rank #1 or #2, Strong Buy or Buy, which also has a Score of an A or a B in your personal trading style. How good is it? A higher number means the more debt a company has compared to its capital structure. Others look for those that have lagged the market, believing those are the ones ripe for the biggest increases to come. Zacks Industry Rank Education -- Learn more about the Zacks Industry Rank. Undoubtedly, the company is benefiting from the work-from-home and online learning wave following the coronavirus pandemic outbreak that forced more and more people to stay home.Zoom Video’s solutions include Zoom Meetings, Zoom Rooms, Zoom Phone (launched in 2019), Zoom Chat, Zoom Conference Room Connector, Zoom Video Webinars, Zoom for Developers and Zoom App Marketplace.Zoom Video’s flagship solution Zoom Meetings provides high-definition video, voice, chat and content sharing across mobile devices, desktops, laptops, telephones and conference room systems. In fact, when combining a Zacks Rank #3 or better and a positive Earnings ESP, stocks produced a positive surprise 70% of the time, while they also saw 28.3% annual returns on average, according to our 10 year backtest. Real time prices by BATS. If a company's net margin is 15%, for example, that means its net income (or profit) is 15 cents for every $1 of sales the company makes. Zoom Video Communications’ cloud-native unified communications platform, which combines video, audio, phone, screen sharing and chat functionalities, makes remote-working and collaboration easy. ROE values, like other values, can vary significantly from one industry to another. The Zacks Sector Rank assigns a rating to each of the 16 Sectors based on their average Zacks Rank. The 20 Day Average Volume is the average daily trading volume over the last 20 trading days. It's then divided by the number of shares outstanding to determine how much cash is generated per share. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. For example, a cash/price ratio, or cash yield, of .08 suggests an 8% return or 8 cents for every $1 of investment. The Style Scores are a complementary set of indicators to use alongside the Zacks Rank. Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations. Zacks Sector Rank Education -- Learn more about the Zacks Sector Rank. For one, part of trading is being able to get in and out of a stock easily. A P/S ratio of 2 means you're paying $2 for every $1 of sales the company makes. A ratio of 1 means a company's assets are equal to its liabilities. Get the latest Price and Consensus Chart for Zoom Video Communications, Inc. from Zacks Investment Research The Zacks Industry Rank assigns a rating to each of the 265 X (Expanded) Industries based on their average Zacks Rank. But, typically, an aggressive growth trader will be interested in the higher growth rates. A higher number is better than a lower number. Zacks Industry Rank Education -- Learn more about the Zacks Industry Rank. Less than 1 means its liabilities exceed its short-term assets (cash, inventory, receivables, etc.). You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. A higher number is better than a lower one as it shows how effective a company is at generating revenue from its assets. One of the reasons some investors prefer the P/S ratio over other metrics like the P/E ratio is because sales are harder to manipulate on an income statement than earnings. In fact, it has blown away our bottom-line estimate by an average of 340% in the trailing … Neither Zacks Investment This is also useful to know when comparing a stock's daily volume (which can be found on a ticker's hover-quote) to that of its average volume. The Growth Scorecard evaluates sales and earnings growth along with other important growth measures. So, when comparing one stock to another in a different industry, it's best make relative comparisons to that stock's respective industry values. Aside from using absolute numbers, however, you can also find value by comparing the P/E ratio to its relevant industry and its peers. Zacks Rank Education - Learn about the Zacks Rank, Zacks Rank Home - Zacks Rank resources in one place, Zacks Premium - The only way to fully access the Zacks Rank. And like the P/E ratio, a lower number is typically considered 'better' than a higher number. ET on Zacks.com. After the P/E ratio, it's one of the most common valuation metrics. Subscription revenues are driven, primarily by the number of paid hosts as well as purchases of additional products including Zoom Rooms, Zoom Video Webinars and Zoom Phone.Markedly, Zoom Meeting is offered on a per-host-per-month basis in Basic, Pro, Business and Enterprise tiers. (Book value is defined as total assets minus liabilities, preferred stocks, and intangible assets.) Plus, ZM info will be updated daily in your Zacks.com Portfolio Tracker . . . As a point of reference, over the last 10 years, the median sales growth for the stocks in the S&P 500 was 14%. Within the VGM Score, stocks are graded into five groups: A, B, C, D and F. As you might remember from your school days, an A is better than a B; a B is better than a C; a C is better than a D; and a D is better than an F. As an investor, you want to buy srocks with the highest probability of success. A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return. Buy This Cheap Stock as Apple, Lululemon Bet on Digital Fitness? The industry with the best average Zacks Rank would be considered the top industry (1 out of 265), which would place it in the top 1% of Zacks Ranked Industries. There's also a VGM Score ('V' for Value, 'G' for Growth and 'M' for Momentum), which combines the weighted average of the individual style scores into one score. Cash Flow is a measurement of a company's health. That means you want to buy stocks with a Zacks Rank #1 or #2, Strong Buy or Buy, which also has a Score of an A or a B in your personal trading style. To learn more, click here. Cash flow itself is an important item on the income statement. The X Industry values displayed in this column are the median values for all of the stocks within their respective industry. Further, Zoom Video Webinars ($40 per month per host) allows users to conduct large-scale online events. If a company's expenses are growing faster than their sales, this will reduce their margins. The Daily Price Change displays the day's percentage price change using the most recently completed close. For the quarter, the company expects non-GAAP earnings between 73 cents and … Learn more about Zacks Equity Research reports. The Momentum Score takes all of this and more into account. completeness, timeliness, or correct sequencing of any of the Information on * Indicates the important links in the menu, After-Market: As the name suggests, it's calculated as sales divided by assets. To learn more, click here. This measure is expressed as a percentage. An industry with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's. The Cash/Price ratio is calculated as cash and marketable securities per share divided by the stock price. Like earnings, a higher growth rate is better than a lower growth rate. The Momentum Scorecard table also displays the values for its respective Industry along with the values and Momentum Score of its three closest peers. Traditionally, investors would look at the stock with the lower P/E and deem it a bargain. ROE is always expressed as a percentage. ZacksTrade and Zacks.com are separate companies. It's used by investors as a measure of financial health. Zacks Earnings ESP (Expected Surprise Prediction) looks to find companies that have recently seen positive earnings estimate revision activity. In addition to all of the proprietary analysis in the Snapshot, the report also visually displays the four components of the Zacks Rank (Agreement, Magnitude, Upside and Surprise); provides a comprehensive overview of the company business drivers, complete with earnings and sales charts; a recap of their last earnings report; and a bulleted list of reasons to buy or sell the stock. A P/B of 1 means it's selling at its per share book value. It's also commonly referred to as a 'liquidity ratio'. Growth Style - Learn more about the Growth Style. Valuation is also important, so investors should note that ZM has a Forward P/E ratio of 172.87 right now. A strong cash flow is important for covering interest payments, particularly for highly leveraged companies. Zacks Earnings ESP (Expected Surprise Prediction) looks to find companies that have recently seen positive earnings estimate revision activity. Researching stocks has never been so easy or insightful as with the ZER Analyst and Snapshot reports. .Zoom Video faces significant competition from Cisco Webex, LogMeIn GoToMeeting, Microsoft Teams, Google G Suite, Avaya, RingCentral and 8x8. Enterprise Value (EV) is Market Capitalization + Debt - Cash. Undoubtedly, the company is benefiting from the work-from-home and online learning wave following the coronavirus pandemic outbreak that forced more and more people to stay home.Zoom Video’s solutions include Zoom Meetings, Zoom Rooms, Zoom Phone (launched in 2019), Zoom Chat, Zoom Conference Room Connector, Zoom Video Webinars, Zoom for Developers and Zoom App Marketplace.Zoom Video’s flagship solution Zoom Meetings provides high-definition video, voice, chat ... Zoom Video Communications’ cloud-native unified communications platform, which combines video, audio, phone, screen sharing and chat functionalities, makes remote-working and collaboration easy. A stock with a P/E ratio of 20, for example, is said to be trading at 20 times its annual earnings. The Zacks Industry Rank assigns a rating to each of the 265 X (Expanded) Industries based on their average Zacks Rank. Valuation metrics show that Zoom Video Communications, Inc. may be overvalued. 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