Is Zoom Video Communications (ZM) Stock Outpacing Its Computer and Technology Peers 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? A quick glance at the company's year-to-date performance in comparison to the rest of the Computer and Technology sector should help us answer this question.
Zoom Video Communications is a member of our Computer and Technology group, which includes 605 different companies and currently sits at #4 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. ZM is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for ZM's full-year earnings has moved 4,050% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the latest available data, ZM has gained about 306.82% so far this year. In comparison, Computer and Technology companies have returned an average of 22.77%. This means that Zoom Video Communications is performing better than its sector in terms of year-to-date returns.
Breaking things down more, ZM is a member of the Internet - Software industry, which includes 90 individual companies and currently sits at #110 in the Zacks Industry Rank. This group has gained an average of 59.91% so far this year, so ZM is performing better in this area.
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.