Yahoo Finance Zuora (ZUO) Exceeds Market Returns: Some Facts to Consider
In the latest market close, Zuora (ZUO) reached $9.75, with a +1.25% movement compared to the previous day. This change outpaced the S&P 500's 1.2% gain on the day. Meanwhile, the Dow experienced a rise of 0.69%, and the technology-dominated Nasdaq saw an increase of 1.59%.
The enterprise software company's shares have seen an increase of 8.81% over the last month, surpassing the Computer and Technology sector's loss of 6.83% and the S&P 500's loss of 4.16%.
The investment community will be closely monitoring the performance of Zuora in its forthcoming earnings report. The company is expected to report EPS of $0.07, up 40% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $108.8 million, up 5.53% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $0.41 per share and revenue of $455 million. These totals would mark changes of +24.24% and +5.41%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Zuora. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Zuora currently has a Zacks Rank of #1 (Strong Buy).
From a valuation perspective, Zuora is currently exchanging hands at a Forward P/E ratio of 23.49. For comparison, its industry has an average Forward P/E of 28.13, which means Zuora is trading at a discount to the group.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 65, which puts it in the top 26% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within 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.
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Zuora, Inc. (ZUO) : Free Stock Analysis Report
