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? By taking a look at the stock's year-to-date performance in comparison to its Computer and Technology peers, we might be able to answer that question.
Zoom Video Communications is one of 612 individual stocks in the Computer and Technology sector. Collectively, these companies sit at #11 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. ZM is currently sporting a Zacks Rank of #1 (Strong Buy).
Within the past quarter, the Zacks Consensus Estimate for ZM's full-year earnings has moved 122.15% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
According to our latest data, ZM has moved about 665.05% on a year-to-date basis. Meanwhile, stocks in the Computer and Technology group have gained about 27.87% on average. This shows that Zoom Video Communications is outperforming its peers so far this year.
Looking more specifically, ZM belongs to the Internet - Software industry, which includes 92 individual stocks and currently sits at #167 in the Zacks Industry Rank. Stocks in this group have gained about 85.21% so far this year, so ZM is performing better this group in terms of year-to-date returns.
Investors in the Computer and Technology sector will want to keep a close eye on ZM as it attempts to continue its solid performance.
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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.