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Is Zoom Video Communications (ZM) Outperforming Other Computer and Technology Stocks This Year?

Investors focused on the Computer and Technology space have likely heard of Zoom Video Communications (ZM), but is the stock performing well in comparison to the rest of its sector peers? One simple way to answer this question is to take a look at the year-to-date performance of ZM and the rest of the Computer and Technology group's stocks.

Zoom Video Communications is one of 606 individual stocks in the Computer and Technology sector. Collectively, these companies sit at #7 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.

The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. ZM is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past 90 days, the Zacks Consensus Estimate for ZM's full-year earnings has moved 4,018.75% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

According to our latest data, ZM has moved about 273.18% on a year-to-date basis. Meanwhile, the Computer and Technology sector has returned an average of 18.69% on a year-to-date basis. This means that Zoom Video Communications is performing better than its sector in terms of year-to-date returns.

To break things down more, ZM belongs to the Internet - Software industry, a group that includes 91 individual companies and currently sits at #109 in the Zacks Industry Rank. On average, this group has gained an average of 60.47% so far this year, meaning that ZM is performing better in terms of year-to-date returns.

ZM will likely be looking to continue its solid performance, so investors interested in Computer and Technology stocks should continue to pay close attention to the company.


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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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