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

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The Computer and Technology group has plenty of great stocks, but investors should always be looking for companies 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 our Computer and Technology group, which includes 627 different companies and currently sits at #3 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.

The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. ZM is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for ZM's full-year earnings has moved 118.75% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Our latest available data shows that ZM has returned about 102.98% since the start of the calendar year. Meanwhile, the Computer and Technology sector has returned an average of -16.82% on a year-to-date basis. This means that Zoom Video Communications is outperforming the sector as a whole this year.

Breaking things down more, ZM is a member of the Internet - Software industry, which includes 90 individual companies and currently sits at #87 in the Zacks Industry Rank. This group has lost an average of 10.21% so far this year, so ZM is performing better in this area.

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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