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Why Zoom Video (ZM) Could Be Positioned for a Surge

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Zoom Video Communications, Inc. (ZM - Free Report) is aprovider of video and web conferencing services that could be an interesting play for investors. That is because, not only does the stock have decent short-term momentum, but it is seeing solid activity on the earnings estimate revision front as well.

These positive earnings estimate revisions suggest that analysts are becoming more optimistic on ZM’s earnings for the coming quarter and year. In fact, consensus estimates have moved sharply higher for both of these time frames over the past four weeks, suggesting that Zoom Video could be a solid choice for investors.

Current Quarter Estimates for ZM

In the past 30 days, six estimates have gone higher for Zoom Video while none have gone lower in the same time period. The trend has been pretty favorable too, with estimates increasing from breakeven earnings a share 30 days ago, to 1 cent today, a significant move.

Current Year Estimates for ZM

Meanwhile, Zoom Video’s current year figures are also looking quite promising, with eight estimates moving higher in the past month, compared to none lower. The consensus estimate trend has also seen a boost for this time frame, improving from a loss of 3 cents per share 30 days ago to earnings of 2 cents per share today, a significant increase.

Bottom Line

The stock has also started to move higher lately, adding 27.6% over the past four weeks, suggesting that investors are starting to take note of this impressive story. So, investors may want to consider this Zacks Rank #3 (Hold) stock to profit in the near future. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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