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

Core Insights - Zacks Premium provides various tools for investors to enhance their stock market strategies and confidence [1] - The Zacks Style Scores serve as complementary indicators to the Zacks Rank, helping investors select stocks with high potential for market outperformance [2] Zacks Style Scores Overview - The Style Scores categorize stocks based on value, growth, and momentum characteristics, assigning ratings from A to F, with A indicating the highest potential for outperformance [3] - The Value Score identifies attractive stocks using financial ratios like P/E and Price/Sales, appealing to value investors [3] - The Growth Score focuses on a company's future prospects, analyzing earnings and sales growth to find sustainable growth stocks [4] - The Momentum Score helps investors capitalize on price trends by analyzing recent price changes and earnings estimate revisions [5] - The VGM Score combines all three Style Scores, providing a comprehensive indicator for investors who utilize multiple investing strategies [6] Zacks Rank and Performance - The Zacks Rank is a proprietary model that uses earnings estimate revisions to simplify portfolio building, with 1 (Strong Buy) stocks achieving an average annual return of +23.93% since 1988, significantly outperforming the S&P 500 [7][8] - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B to maximize returns [10] Stock Highlight: Zoom Video Communications - Zoom Video Communications is currently rated 2 (Buy) on the Zacks Rank and has a VGM Score of B, benefiting from increased demand for remote work solutions [12] - The stock has a Momentum Style Score of B, with shares rising 4.7% over the past four weeks, and an upward revision in earnings estimates for fiscal 2026 [13] - The Zacks Consensus Estimate for Zoom's earnings has increased by $0.02 to $5.83 per share, with an average earnings surprise of +8.7% [13]