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Is Zoom Video Communications (ZM) Stock Outpacing Its Computer and Technology Peers This Year?

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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. Is Zoom Video Communications (ZM - Free Report) 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 a member of the Computer and Technology sector. This group includes 627 individual stocks and currently holds a Zacks Sector Rank of #7. 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 system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. ZM is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for ZM's full-year earnings has moved 29.43% higher within the past quarter. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Based on the latest available data, ZM has gained about 1.71% so far this year. Meanwhile, the Computer and Technology sector has returned an average of 0.84% on a year-to-date basis. As we can see, Zoom Video Communications is performing better than its sector in the calendar year.

To break things down more, ZM belongs to the Internet - Software industry, a group that includes 104 individual companies and currently sits at #186 in the Zacks Industry Rank. This group has lost an average of 4.72% 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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