Despite an incredible market rally that sent the major market indexes back to new highs, Zoom Video Communications (ZM Quick QuoteZM - Free Report) has failed to participate in the move. Zoom, a Zacks Rank #3 (Hold) stock, faces increasing competition in the video-conferencing space. With a hybrid working environment looking to persist into the indefinite future, is now the time to buy?

Zoom is set to report fourth-quarter results on Monday after the bell. The Zacks Consensus Estimate calls for earnings of $1.15 per share, reflecting a -5.7% decline relative to the same quarter last year. The communications platform has exceeded the earnings mark in each of the past four quarters, delivering an average earnings surprise of 29.7% over that timeframe. Sales are anticipated to have risen a paltry 0.96% during the fourth quarter.

Zoom has faced increased competition from Microsoft Teams and Google Meet. The video-conferencing company has seen its stock widely underperform the market since its former peak in 2020 amidst the COVID-19 pandemic. ZM stock trades at just 13.4 times forward earnings. The former ‘stay-at-home’ play may have seen its best growth days in the past.