Is Zoom Video Communications (ZM) Stock Outpacing Its Computer and Technology Peers This Year?
The Computer and Technology group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Zoom Video Communications (ZM) one of those stocks right now? 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 606 individual stocks in the Computer and Technology sector. Collectively, these companies sit at #10 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 is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. ZM is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past three months, the Zacks Consensus Estimate for ZM's full-year earnings has moved 4,018.75% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
According to our latest data, ZM has moved about 265.29% on a year-to-date basis. At the same time, Computer and Technology stocks have gained an average of 14.81%. This means that Zoom Video Communications is outperforming the sector as a whole this year.
Looking more specifically, ZM belongs to the Internet - Software industry, a group that includes 91 individual stocks and currently sits at #75 in the Zacks Industry Rank. On average, stocks in this group have gained 47.36% this year, meaning that ZM is performing better 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.