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Is Zoom Video Communications (ZM) Outperforming Other Computer and Technology Stocks 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 612 individual stocks and currently holds a Zacks Sector Rank of #5. 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 90 days, the Zacks Consensus Estimate for ZM's full-year earnings has moved 4,820% 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 224.84% since the start of the calendar year. Meanwhile, the Computer and Technology sector has returned an average of 10.72% on a year-to-date basis. This shows that Zoom Video Communications is outperforming its peers so far this year.

To break things down more, ZM belongs to the Internet - Software industry, a group that includes 90 individual companies and currently sits at #29 in the Zacks Industry Rank. On average, this group has gained an average of 39.93% so far this year, meaning that ZM is performing better in terms of year-to-date returns.

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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