This Pandemic-Era Stock is Finally Roaring Back

Core Insights - Zoom Video Communications (ZM) has experienced a significant recovery from its 2024 lows, with shares gaining 45% and outperforming the S&P 500 since mid-August 2024 [1][5] - The stock currently holds a Zacks Rank 1 (Strong Buy), reflecting positive EPS revisions among analysts [2][5] Financial Performance - In the latest financial release, ZM reported nearly 5% sales growth year-over-year, with adjusted EPS of $1.53, marking a 10% increase [6][8] - Operating cash flow reached $516 million, up from $449.3 million in the same period last year, while free cash flow increased nearly 40% year-over-year to $508 million [6] - The number of customers contributing over $100,000 in trailing 12-month revenue rose by 8.7% compared to the previous year, indicating a more lucrative customer base [7] Growth Outlook - The 5% quarterly sales growth rate is the highest in eleven periods, suggesting a positive turnaround for the company [8] - ZM has raised its sales and free cash flow guidance for the current fiscal year, with expected sales of $4.8 billion reflecting a 3.8% year-over-year growth [11][14]