Is Zoom Video Communications (ZM) Outperforming Other Computer and Technology Stocks This Year?October 11, 2020
For those looking to find strong Computer and Technology stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Zoom Video Communications (ZM) been one of those stocks this year? Let’s take a closer look at the stock’s year-to-date performance to find out.
Zoom Video Communications is a member of our Computer and Technology group, which includes 613 different companies and currently sits at #11 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 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).
Over the past three months, the Zacks Consensus Estimate for ZM’s full-year earnings has moved 107.11% 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 602.90% on a year-to-date basis. At the same time, Computer and Technology stocks have gained an average of 22.84%. 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 92 individual companies and currently sits at #169 in the Zacks Industry Rank. On average, this group has gained an average of 77.26% so far 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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