Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. 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. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. The earnings report, which is expected to be released on November 25, 2024, might help the stock move higher if these key numbers are better than expectations. In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.34 per share and a revenue of $4.64 billion, indicating changes of +2.5% and +2.43%, respectively, from the former year.
Projected Revenue Growth
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%.
- Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
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- Dimensional Fund Advisors LP now owns 1,365,705 shares of the company’s stock valued at $80,827,000 after purchasing an additional 264,217 shares in the last quarter.
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.
Here at Zacks, we prioritize appraising the 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 how to day trade penny stocks and 9 important strategies to learn now 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.
Investing in Zoom Stock (ZM)
Still, the bear estimate calls for a $700-per-share or less stock price, amounting to more than a 10-fold gain from current levels if that price target holds. Zoom Video Communications provides a communications platform that connects people through video, voice, chat, and content sharing. The company’s cloud-native platform enables face-to-face video and connects users across various devices and locations in a single meeting. Zoom, which was founded in 2011 and is headquartered in San Jose, California, serves companies of all sizes from all industries around the world. The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state.
MarketBeat All Access Features
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 orbex commissions largest 3d printer in europe to build prime rocket by each of the covering analysts.
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 why nikola stock fell today 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.
Zoom Video Communications (ZM) Maintains Strong Enterprise Position: AI Revenue Streams Boost Optimism
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. The consensus EPS estimate for the quarter has been revised 1.11% lower over the last 30 days to the current level.
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, the Computer and Technology sector gained 0.18%, while the S&P 500 gained 0.62%.
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.
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 ahead of a company’s earnings release offer clues to the business conditions for the period whose results are coming out.
