Yahoo Finance Here's Why Zoom Video Communications (ZM) is a Strong Momentum Stock
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors.
Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.
Is This 1 Momentum Stock a Screaming Buy Right Now?
For momentum investors, upward or downward trends in a stock's price or earnings outlook take precedent, so they'll want to zero in on the Momentum Style Score. This Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
Zoom Video Communications (ZM)
Zoom Video Communications’ cloud-native unified communications platform, which combines video, audio, phone, screen sharing and chat functionalities, makes remote-working and collaboration easy. 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.
ZM boasts a Momentum Style Score of A and VGM Score of B, and holds a Zacks Rank #3 (Hold) rating. Shares of Zoom Video Communications has seen some interesting price action recently; the stock is up 0.6% over the past one week and up 16.4% over the past four weeks. And in the last one-year period, ZM has lost 5%. As for the stock's trading volume, 4,703,423 shares on average were traded over the last 20 days.
A company's earnings performance is important for momentum investors as well. For fiscal 2025, 10 analysts revised their earnings estimate higher in the last 60 days for ZM, while the Zacks Consensus Estimate has increased $0.26 to $5.31 per share. ZM also boasts an average earnings surprise of 17.8%.
ZM should be on investors' short list because of its impressive earnings fundamentals, a good Zacks Rank, and strong Momentum and VGM Style Scores.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Zoom Video Communications, Inc. (ZM) : Free Stock Analysis Report
