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Why Zoom Video (ZM) Could Be Positioned for a Surge

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Zoom Video Communications, Inc. (ZM - Free Report) is a video-first unified communications platform provider that could be an interesting play for investors. That is because, not only does the stock have decent short-term momentum, but it is seeing solid activity on the earnings estimate revision front as well.

These positive earnings estimate revisions suggest that analysts are becoming more optimistic on ZM’s earnings for the coming quarter and year. In fact, consensus estimates have moved sharply higher for both of these time frames over the past four weeks, suggesting that Zoom Video could be a solid choice for investors.

Current Quarter Estimates for ZM

In the past 30 days, six estimates have gone higher for Zoom Video while none have gone lower in the same time period. The trend has been pretty favorable too, with estimates increasing from 6 cents a share 30 days ago, to 10 cents today, a move of 66.7%.

Zoom Video Communications, Inc. Price and Consensus

Current Year Estimates for ZM

Meanwhile, Zoom Video’s current year figures are also looking quite promising, with nine estimates moving higher in the past month, compared to none lower. The consensus estimate trend has also seen a boost for this time frame, increasing from 27 cents per share 30 days ago to 41 cents per share today, an increase of 51.9%.

Bottom Line

The stock has also started to move higher lately, adding 24.9% over the past four weeks, suggesting that investors are starting to take note of this impressive story. So, investors may want to consider this Zacks Rank #2 (Buy) stock to profit in the near future. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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