A handful of stocks benefited massively during the pandemic. It was an interesting time to be an investor, to say the least, and those who targeted the stay-at-home stocks were rewarded handsomely with considerable gains.
One of those stocks includes Zoom Video Communications ZM. The stock currently sports a Zacks Rank #1 (Strong Buy), reflective of bullish EPS revisions among analysts. Is it time for the stock to finally regain some attention?
Zoom Video Communications
Zoom Video Communications’ cloud-native unified communications platform combines video, audio, phone, screen sharing, and chat functionalities. It’s easy to understand why shares gained popularity during that period, as many were forced onto the platform for both personal and professional reasons.
Sales exploded during the pandemic before leveling off significantly over recent years, as shown below. The weak top-line performance has been a major thorn in the side, explaining the poor price action we’ve seen since the COVID era.
Image Source: Zacks Investment Research
EPS expectations for its current fiscal year reflect positivity, with the current $5.96 Zacks Consensus EPS estimate up nearly 13% over the last year. Revenue revisions have followed a similar positive path, with the $4.8 billion expected in its current fiscal year up by roughly 2% over the same timeframe.
Image Source: Zacks Investment Research
Bottom Line
While stocks such as Zoom Video Communications ZM were widely hailed during the pandemic, the attention since has drastically reduced. A return to office post-COVID and other similar developments stunted the company’s growth in a big way, with shares suffering as a result.
The stock has quietly consolidated since, with recent positive estimate revisions pushing the once-beloved stock into a Zacks Rank #1 (Strong Buy).
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the favorite stock to gain +100% or more in the months ahead. They include
Stock #1: A Disruptive Force with Notable Growth and Resilience
Stock #2: Bullish Signs Signaling to Buy the Dip
Stock #3: One of the Most Compelling Investments in the Market
Stock #4: Leader In a Red-Hot Industry Poised for Growth
Stock #5: Modern Omni-Channel Platform Coiled to Spring
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. While not all picks can be winners, previous recommendations have soared +171%, +209% and +232%.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
