Zoom Communications (ZM) is a Top-Ranked Growth Stock: Should You Buy?
ZoomZoom(US:ZM) ZACKS·2025-12-23 15:46

Core Insights - Zacks Premium offers tools for investors to enhance their stock market engagement and confidence, including daily updates, research reports, and stock screens [1] Zacks Style Scores Overview - Zacks Style Scores are indicators that rate stocks based on value, growth, and momentum methodologies, helping investors identify stocks likely to outperform the market in the short term [2] Style Scores Breakdown - Value Score: Focuses on identifying undervalued stocks using ratios like P/E, PEG, and Price/Sales to find attractive investment opportunities [3] - Growth Score: Concentrates on a company's financial health and future outlook, analyzing projected and historical earnings, sales, and cash flow for sustainable growth [4] - Momentum Score: Targets stocks with upward or downward price trends, utilizing recent price changes and earnings estimate shifts to identify optimal buying times [5] - VGM Score: Combines all three Style Scores to provide a comprehensive rating, highlighting stocks with the best value, growth potential, and momentum [6] Zacks Rank Integration - The Zacks Rank model uses earnings estimate revisions to guide investors in building successful portfolios, with 1 (Strong Buy) stocks achieving an average annual return of +23.81% 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 stocks with a 3 rank should also have favorable Style Scores to ensure potential upside [9][10] Company Spotlight: Zoom Video Communications - Zoom Video Communications is rated 2 (Buy) on the Zacks Rank and has a VGM Score of B, benefiting from increased demand for remote work solutions post-pandemic [11] - The company is projected to have year-over-year earnings growth of 7.6% for the current fiscal year, with upward revisions from analysts and a Zacks Consensus Estimate of $5.96 per share [12]