In the latest trading session, Zendesk (ZEN) closed at $83.88, marking a +1.16% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.01%. Meanwhile, the Dow lost 0.1%, and the Nasdaq, a tech-heavy index, added 0.12%.
Prior to today's trading, shares of the customer-service software maker had gained 5.32% over the past month. This has outpaced the Computer and Technology sector's gain of 4.57% and the S&P 500's gain of 2.24% in that time.
Wall Street will be looking for positivity from ZEN as it approaches its next earnings report date. In that report, analysts expect ZEN to post earnings of $0.03 per share. This would mark year-over-year growth of 50%. Our most recent consensus estimate is calling for quarterly revenue of $179.64 million, up 38.41% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.29 per share and revenue of $803.10 million. These totals would mark changes of +31.82% and +34.13%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for ZEN. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. The Zacks Consensus EPS estimate remained stagnant within the past month. ZEN is holding a Zacks Rank of #2 (Buy) right now.
In terms of valuation, ZEN is currently trading at a Forward P/E ratio of 281.77. Its industry sports an average Forward P/E of 57.95, so we one might conclude that ZEN is trading at a premium comparatively.
It is also worth noting that ZEN currently has a PEG ratio of 9.54. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ZEN's industry had an average PEG ratio of 3.38 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 60, which puts it in the top 24% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
Zendesk, Inc. (ZEN): Free Stock Analysis Report
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