So, when comparing one stock to another in a different industry, it's best make relative comparisons to that stock's respective industry values. The technique has proven to be very useful for finding positive surprises. Like most ratios, this number will vary from industry to industry. ZOOM VIDEO CMTS Key Stats, charts, historical data, comparisons and more at Zacks Advisor Tools. The Sales to Assets ratio (or Sales to Total Assets or S/TA for short) shows how much sales are generated from a company's assets. A ratio of 2 means its assets are twice that of its liabilities. Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. This change lagged the S&P 500's 0.58% gain on the day. This is a medium-term price change metric. These returns cover a period from January 1, 1988 through October 5, 2020. $397.45 Shareholder Equity (which is the difference between Total Assets and Total Liabilities) can be found on the Balance Sheet. This page has not been authorized, sponsored, or otherwise approved or endorsed by the companies represented herein. In contrast, the net income that goes into the earnings portion of the P/E ratio does not add these in, thus artificially reducing the income and skewing the P/E ratio.  |  Privacy Policy. We use cookies to understand how you use our site and to improve your experience. In the latest trading session, Zoom Video Communications (ZM) closed at $150.26, marking a -0.86% move from the previous day. Since 1988 it has more than doubled the S&P 500 with an average gain of +24.41% per year. The Zacks Equity Research reports, or ZER for short, are our in-house, independently produced research reports. Zacks Sector Rank Education - Learn more about the Zacks Sector Rank. It is the most commonly used metric for determining a company's value relative to its earnings. A change in margin can reflect either a change in business conditions, or a company's cost controls, or both. Conventional wisdom says that a PEG ratio of 1 or less is considered good (at par or undervalued to its growth rate). The PEG ratio is the P/E ratio divided by its growth rate. 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. Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. The sector with the worst average Zacks Rank (16 out of 16) would place in the bottom 1%. Since there is a fair amount of discretion in what's included and not included in the 'ITDA' portion of this calculation, it is considered a non-GAAP metric. 60-Month Beta: Coefficient that measures the volatility of a stock's returns relative to the market (S&P 500). If, on the other hand, it went from $1.00 to 90 cents, that would be a -10% change in the consensus estimate revision. -1.98 (-0.50%) 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. When evaluating a stock, it can be useful to compare it to its industry as a point of reference. Current Cash Flow Growth measures the percent change in the year over year Cash Flow. This item is updated at 9 pm EST each day. This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply. Once again, cash flow is net income plus depreciation and other non-cash charges. The Style Scores are a complementary set of indicators to use alongside the Zacks Rank. ZM stock was bought by a variety of institutional investors in the last quarter, including BlackRock Inc., SB Management Ltd, State Street Corp, First Trust Advisors LP, Charles Schwab Investment Management Inc., California Public Employees Retirement System, AQR Capital Management LLC, and Voloridge Investment … 4:40 PM ET. 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. The Zacks Sector Rank assigns a rating to each of the 16 Sectors based on their average Zacks Rank. Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations. Basic is offered for free as part of Zoom Video’s “freemium” strategy to convert these users into a Zoom Host, a paying user. The monthly returns are then compounded to arrive at the annual return. Zacks Rank Education -- Learn more about the Zacks Rank Regardless of the many ways investors use this item, whether looking at a stock's price change, an index's return, or a portfolio manager's performance, this time-frame is a common judging metric in the financial industry. The Zacks Industry Rank assigns a rating to each of the 265 X (Expanded) Industries based on their average Zacks Rank. Return on Equity (or ROE) is calculated as income divided by average shareholder equity (past 12 months, including reinvested earnings). At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. Zoom Video (ZM Quick Quote ZM - Free Report) is set to report third-quarter fiscal 2021 results on Nov 30. This is a medium-term price change metric (like the 4 week price change). The respective items are ranked and graded into five groups: A, B, C, D and F. 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 stocks with the highest probability of success. Investment Research, Inc, licensed by Zacks Investment Research, Inc. from It takes the consensus sales estimate for the current fiscal year (F1) divided by the sales for the last completed fiscal year (F0) (actual if reported, the consensus if not). In this example, we are using the consensus earnings estimate for the Current Fiscal Year (F1). Visit performance for information about the performance numbers displayed above. It's another great way to determine whether a company is undervalued or overvalued with the denominator being cash flow. The Price to Sales ratio or P/S is calculated as price divided by sales. In short, this is how much a company is worth. Value Style - Learn more about the Value Style. But when compared to its growth rate, it does't have the earnings growth to justify its P/E. Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that … See the Full List of Stocks To Beat Earnings. Moreover, when comparing stocks in different industries, it can become even more important to look at the relative measures, since different stocks in different industries have different values that are considered normal. The Momentum Scorecard table also displays the values for its respective Industry along with the values and Momentum Score of its three closest peers. It allows the user to better focus on the stocks that are the best fit for his or her personal trading style. 3 Large-Cap Dividend Stocks to Buy and Hold Before 2021, Cisco (CSCO) Announces the Buyouts of Slido And IMImobile. It measures a company's ability to pay short-term obligations. NASDAQ data is at least 15 minutes delayed. It's also commonly referred to as a 'liquidity ratio'. A company with an ROE of 10%, for example, means it created 10 cents of assets for every $1 of shareholder equity in a given year. A rising stock on above average volume is typically a bullish sign whereas a declining stock on above average volume is typically bearish. Valuation is also important, so investors should note that ZM has a Forward P/E ratio of 172.87 right now. The Zacks Industry Rank assigns a rating to each of the 265 X (Expanded) Industries based on their average Zacks Rank. in the Information. The income number is listed on a company's Income Statement. Recent price changes and earnings estimate revisions indicate this would be a good stock for momentum investors with a Momentum Score of A. ZM’s adjusted quarterly earnings of $0.15 a share also destroyed our $0.08 Zacks estimate. This longer-term historical perspective lets the user see how a company has grown over time. Conversely, if the yield on stocks is higher than the 10 Yr., then stocks would be considered undervalued. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating indiv idual securities. The 12 Week Price Change displays the percentage price change over the most recently completed 12 weeks (60 days). There may be delays, omissions, or inaccuracies Many other growth items are considered as well. If you wish to go to ZacksTrade, click OK. If you do not, click Cancel. Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations. This list of both classic and unconventional valuation items helps separate which stocks are overvalued, rightly lowly valued, and temporarily undervalued which are poised to move higher. Investors like this metric as it shows how a company finances its operations, i.e., what percentage is financed thru shareholder equity or debt. Note; companies will typically sell for more than their book value in much the same way that a company will sell at a multiple of its earnings. Earnings estimate revisions are the most important factor influencing stocks prices. Buy This Cheap Stock as Apple, Lululemon Bet on Digital Fitness? The industry with the worst average Zacks Rank (265 out of 265) would place in the bottom 1%. We use cookies to understand how you use our site and to improve your experience. Zacks Rank Education -- Learn more about the Zacks Rank 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. Traditionally, investors would look at the stock with the lower P/E and deem it a bargain. Using this item along with the 'Current Cash Flow Growth Rate' (in the Growth category above), and the 'Price to Cash Flow ratio' (several items above in this same Value category), will give you a well-rounded indication of the amount of cash they are generating, the rate of their cash flow growth, and the stock price relative to its cash flow. Many investors prefer EV to just Market Cap as a better way to determine the value of a company. Plus, ZM info will be updated daily in your Zacks.com Portfolio Tracker . . . ROE values, like other values, can vary significantly from one industry to another. See rankings and related performance below. Each of the company logos represented herein are trademarks of Verizon Media; Microsoft Corporation; Nasdaq, Inc.; Dow Jones & Company; Forbes Media, LLC; Investor's Business Daily, Inc.; and Morningstar, Inc. NYSE and AMEX data is at least 20 minutes delayed. This includes personalizing content and advertising. Get the latest broker recommendations from Zacks Investment Research. A P/B of 1 means it's selling at its per share book value. Some investors seek out stocks with the best percentage price change over the last 52 weeks, expecting that momentum to continue. Less than 1 means its liabilities exceed its short-term assets (cash, inventory, receivables, etc.). ZacksTrade and Zacks.com are separate companies. 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. 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. Zacks Premium - The way to access to the Zacks Rank. Debt to Capital (or D/C ratio) is the fraction of debt (including mortgages and long-term leases) to long-term capitalization. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms and Conditions of Service. This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply. 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. This is useful for obvious reasons, but can also put the current day's intraday gains into better context by knowing if the recently completed trading day was up or down. Zacks Sector Rank Education -- Learn more about the Zacks Sector Rank. Zacks Industry Rank Education -- Learn more about the Zacks Industry Rank. A value under 20 is generally considered good. In addition, Zoom Video Communications, Inc. has a VGM Score of B (this is a weighted average of the individual Style Scores which allow you to focus on the stocks that best fit your personal trading style). That does not mean that all companies with large growth rates will have a favorable Growth Score. In general, the lower the ratio is the better. So it's a good idea to compare a stock's debt to equity ratio to its industry to see how it stacks up to its peers first. See Zacks' prediction free. That means these items are added back into the net income to produce this earnings number. Zacks' proprietary data indicates that Zoom Video Communications, Inc. is currently rated as a Zacks Rank 3 and we are looking for an inline return from the ZM shares relative to the market in the next few months. 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. Of course, different industries will have different growth rates that are considered good. Including the Zacks Rank, Zacks Industry Rank, Style Scores, the Price, Consensus & Surprise chart, graphical estimate analysis and how a stocks stacks up to its peers. While the F1 consensus estimate and revision is a key driver of stock prices, the Q1 consensus is an important item as well, especially over the short-term, and particularly as a stock approaches its earnings date. Researching stocks has never been so easy or insightful as with the ZER Analyst and Snapshot reports. The detailed multi-page Analyst report does an even deeper dive on the company's vital statistics. completeness, timeliness, or correct sequencing of any of the Information on While the one year change shows the current conditions, the longer look-back period shows how this metric has changed over time and helps put the current reading into proper perspective. 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. 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. The financial health and growth prospects of ZM, demonstrate its potential to outperform the market. 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. The 4 week price change is a good reference point for the individual stock and how it's performed in relation to its peers. But they all have their place in the Growth style. It's used by investors as a measure of financial health. This shows the percentage of profit a company earns on its sales. The Price to Book ratio or P/B is calculated as market capitalization divided by its book value. If the P/S ratio is 1, that means you're paying $1 for every $1 of sales the company makes. ZM is holding a Zacks Rank of #3 (Hold) right now. It can support more than 10,000 view-only attendees.Zoom Video went for an Initial Public Offering (IPO) on Apr 17, 2019. After the P/E ratio, it's one of the most common valuation metrics. Since 1988 it has more than doubled the S&P 500 with an average … NASDAQ data is at least 15 minutes delayed. Seeing a stock's EPS change over 1 week is important. And, of course, the 4 week change helps put the 1 week change into context. Click here to watch the full series. Its Value Score of D indicates it would be a bad pick for value investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Cash flow itself is an important item on the income statement. Ideally, an investor would like to see a positive EPS change percentage in all periods, i.e., 1 week, 4 weeks, and 12 weeks. Copyright 2020 Zacks Investment Research | 10 S Riverside Plaza Suite #1600 | Chicago, IL 60606. But note, different industries have different margin rates that are considered good. The Current Ratio is defined as current assets divided by current liabilities. 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. Seeing a company's projected sales growth instantly tells you what the outlook is for their products and services. 4:42 PM ET. Further, Zoom Video Webinars ($40 per month per host) allows users to conduct large-scale online events. This is our short term rating system that serves as a timeliness indicator for stocks over the next 1 to 3 months. 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. The 20 day average establishes this baseline. Copyright 2020 Zacks Investment Research | 10 S Riverside Plaza Suite #1600 | Chicago, IL 60606. It's calculated as earnings divided by price. 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. Beginning of each month are included in Zacks hypothetical portfolios at the annual return to creation! If you wish to go to ZacksTrade, a lower number means the company $. 0.0857 or 8.57 % indicator for stocks over the last 20 trading days ) to ZacksTrade, P/S... 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