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Buy Zoom Video (ZM) Stock on the Dip Before Q3 Earnings?

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Zacks Stocks In The News · ZM Quick QuoteZM - Free Report) Stock on the Dip Before Q3 Earnings?">Buy Zoom Video (ZM - Free Report) Stock on the Dip Before Q3 Earnings?


On today’s episode of Full Court Finance at Zacks, we explore all things Zoom Video (ZM - Free Report) ahead of the release of its third quarter fiscal 2021 financial results on Monday, November 30. The goal is to help investors decide if they should consider buying the video conferencing stock on the dip despite positive news on the vaccine front.

All three major U.S. indexes jumped over 1% through morning trading Tuesday, on the back of what is being viewed as positive news out of Washington in terms of the transition of power. This is part of a strong November for the market that’s seen stocks hit new highs.












Markets ripped higher after the election, with investors pleased enough with the likelihood of divided government. Then came the positive vaccine news from Pfizer and Moderna. Plus, the broader earnings picture was already improving and large swaths of the U.S. economy continue to bounce back. Let’s also remember that our interest rate environment should help continue to support the market.

With all that said, the coronavirus is still crushing the travel and leisure space and new measures are being rolled out in parts of Europe and the U.S. to help slow the spread of the virus. And even if a vaccine is distributed, it is doesn't mean that people will flood back into crowded office buildings in major cities around the U.S. and world.

This brings us to Zoom Video, which was an early star of the pandemic. ZM crush Netflix (NFLX - Free Report) , Amazon (AMZN - Free Report) , Target (TGT - Free Report) , Peloton (PTON - Free Report) and nearly every other major stay-at-home and “essential” stock. Zoom’s top and bottom-line growth has been impressive and its outlook appears strong. But shares of the cloud video firm has fallen over the last month.

Zoom is clearly not as well-rounded of a cloud software play as the likes of Salesforce (CRM - Free Report) or Adobe (ADBE - Free Report) . Still, it might be worth taking a deeper look at ZM for an array of reasons, especially with it resting around 25% off its October records.

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