9/28/2023 0 Comments Zoom video communications logo![]() ![]() Over the last 30 days, the Zacks Consensus Estimate has changed +17.2%.For the current fiscal year, the consensus earnings estimate of $4.20 points to a change of -3.9% from the prior year. ![]() Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.Zoom Video is expected to post earnings of $0.99 per share for the current quarter, representing a year-over-year change of -3.9%. ![]() And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. When earnings estimates for a company go up, the fair value for its stock goes up as well. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. Now the key question is: Where could the stock be headed in the near term?Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. The Zacks Internet - Software industry, to which Zoom Video belongs, has gained 7.1% over this period. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.Shares of this video-conferencing company have returned -6.6% over the past month versus the Zacks S&P 500 composite's +0.3% change. Zoom Video Communications (ZM) is one of the stocks most watched by visitors lately. ![]()
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