Here's Why Zoom Communications (ZM) is a Strong Growth Stock

Core Insights - Zacks Premium provides various tools for investors to enhance their stock market strategies and confidence [1] - The Zacks Style Scores are designed to help investors select stocks with the highest potential to outperform the market in the short term [2] Zacks Style Scores Overview - Stocks are rated based on value, growth, and momentum characteristics, with scores ranging from A to F, where A indicates the highest potential for outperformance [3] - The Style Scores are categorized into four types: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [3][4][5][6] Value Score - The Value Score identifies attractive stocks based on valuation ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow, appealing to value investors [3] Growth Score - The Growth Score assesses stocks based on projected and historical earnings, sales, and cash flow, targeting growth investors [4] Momentum Score - The Momentum Score evaluates stocks based on price trends and earnings estimate changes, assisting momentum investors in timing their purchases [5] VGM Score - The VGM Score combines the three Style Scores to highlight stocks with the best overall value, growth, and momentum characteristics [6] Zacks Rank Integration - The Zacks Rank utilizes earnings estimate revisions to simplify portfolio building, with 1 (Strong Buy) stocks historically yielding an average annual return of +23.75% since 1988, significantly outperforming the S&P 500 [7][8] Stock Selection Strategy - To maximize returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B, while also considering earnings estimate trends [10][11] Company Spotlight: Zoom Video Communications - Zoom Video Communications is currently rated 2 (Buy) on the Zacks Rank, with a VGM Score of B, benefiting from increased demand for remote communication tools [12] - The company is projected to have year-over-year earnings growth of 1.1% for the current fiscal year, with an upward revision in earnings estimates [13]