Zoom Communications (ZM) is a Great Momentum Stock: Should You Buy?

Company Overview - Zoom Communications (ZM) currently holds a Momentum Style Score of B, indicating a positive outlook based on its price changes and earnings estimate revisions [2] - The company has a Zacks Rank of 1 (Strong Buy), suggesting strong potential for outperformance in the market [3] Price Performance - Over the past week, ZM shares have increased by 2.78%, while the Zacks Internet - Software industry has decreased by 0.72% [5] - In a longer time frame, ZM's monthly price change is 21.94%, significantly outperforming the industry's 4.18% [5] - Over the last quarter, ZM shares have risen by 9.26%, and over the past year, they have increased by 27.77%, compared to the S&P 500's gains of 8.64% and 21.49% respectively [6] Trading Volume - ZM's average 20-day trading volume is 4,102,285 shares, which serves as a bullish indicator when combined with rising stock prices [7] Earnings Outlook - In the past two months, 9 earnings estimates for ZM have been revised upwards, while none have been lowered, leading to an increase in the consensus estimate from $5.59 to $5.77 [9] - For the next fiscal year, 8 estimates have also moved upwards with no downward revisions [9] Conclusion - Given the positive trends in price performance, trading volume, and earnings estimates, ZM is positioned as a strong momentum pick and should be considered for investment [11]