We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Time For This Pandemic Favorite Stock to Roar Back?
Read MoreHide Full Article
Key Takeaways
ZM shares were widely hailed during the COVID-era.
Weak sales growth has been an issue.
The stock now sports a Zacks Rank #1 (Strong Buy).
A handful of stocks benefited massively during the pandemic. It was an interesting time to be an investor, to say the least, and those who targeted the stay-at-home stocks were rewarded handsomely with considerable gains.
One of those stocks includes Zoom Video Communications (ZM - Free Report) . The stock currently sports a Zacks Rank #1 (Strong Buy), reflective of bullish EPS revisions among analysts. Is it time for the stock to finally regain some attention?
Zoom Video Communications
Zoom Video Communications’ cloud-native unified communications platform combines video, audio, phone, screen sharing, and chat functionalities. It’s easy to understand why shares gained popularity during that period, as many were forced onto the platform for both personal and professional reasons.
Sales exploded during the pandemic before leveling off significantly over recent years, as shown below. The weak top-line performance has been a major thorn in the side, explaining the poor price action we’ve seen since the COVID era.
Image Source: Zacks Investment Research
EPS expectations for its current fiscal year reflect positivity, with the current $5.96 Zacks Consensus EPS estimate up nearly 13% over the last year. Revenue revisions have followed a similar positive path, with the $4.8 billion expected in its current fiscal year up by roughly 2% over the same timeframe.
Image Source: Zacks Investment Research
Bottom Line
While stocks such as Zoom Video Communications (ZM - Free Report) were widely hailed during the pandemic, the attention since has drastically reduced. A return to office post-COVID and other similar developments stunted the company’s growth in a big way, with shares suffering as a result.
The stock has quietly consolidated since, with recent positive estimate revisions pushing the once-beloved stock into a Zacks Rank #1 (Strong Buy).
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Time For This Pandemic Favorite Stock to Roar Back?
Key Takeaways
A handful of stocks benefited massively during the pandemic. It was an interesting time to be an investor, to say the least, and those who targeted the stay-at-home stocks were rewarded handsomely with considerable gains.
One of those stocks includes Zoom Video Communications (ZM - Free Report) . The stock currently sports a Zacks Rank #1 (Strong Buy), reflective of bullish EPS revisions among analysts. Is it time for the stock to finally regain some attention?
Zoom Video Communications
Zoom Video Communications’ cloud-native unified communications platform combines video, audio, phone, screen sharing, and chat functionalities. It’s easy to understand why shares gained popularity during that period, as many were forced onto the platform for both personal and professional reasons.
Sales exploded during the pandemic before leveling off significantly over recent years, as shown below. The weak top-line performance has been a major thorn in the side, explaining the poor price action we’ve seen since the COVID era.
Image Source: Zacks Investment Research
EPS expectations for its current fiscal year reflect positivity, with the current $5.96 Zacks Consensus EPS estimate up nearly 13% over the last year. Revenue revisions have followed a similar positive path, with the $4.8 billion expected in its current fiscal year up by roughly 2% over the same timeframe.
Image Source: Zacks Investment Research
Bottom Line
While stocks such as Zoom Video Communications (ZM - Free Report) were widely hailed during the pandemic, the attention since has drastically reduced. A return to office post-COVID and other similar developments stunted the company’s growth in a big way, with shares suffering as a result.
The stock has quietly consolidated since, with recent positive estimate revisions pushing the once-beloved stock into a Zacks Rank #1 (Strong Buy).