ZOOM VIDEO COMMUNICA

ZM
Delayed Quote. Delayed  - 08/10 04:00:00 pm
250USD -3.37%

Zoom Video Communications, Inc. : No turn-around in sight

Nicolas Aleksy
Contributor / Partner

Strategy published on : 07/29/2020 | 06:02

long trade
Live

Entry price : 255.55$
Target : 299$
Stop-loss : 225$
Potential : 17%

The current trading zone is interesting to the point that investors should pay attention to the stock and anticipate a return of the underlying upward trend.
Investors have an opportunity to buy the stock and target the $ 299.

Summary

● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.

● The company has solid fundamentals for a short-term investment strategy.


Strengths

● Analysts expect a sharply increasing business volume for the group, with high growth rates in the coming years.

● The company returns high margins, thereby supporting business profitability.

● Thanks to a sound financial situation, the firm has significant leeway for investment.

● Upward revisions of sales forecast reflect a renewed optimism among the analysts covering the stock.

● Over the past year, analysts have regularly revised upwards their sales forecast for the company.

● For the last week, the earnings per share forecast has been revised upwards. According to recent estimates, analysts give a positive overview of the stock

● For the last 4 months, the company has been enjoying highly positive EPS revisions, which were frequently and significantly raised.

● For the last twelve months, analysts have been gradually revising upwards their EPS forecast for the upcoming fiscal year.

● Within the weekly time frame the stock shows a bullish technical configuration above the support level at 138.56 USD


Weaknesses

● The share is close to its long-term resistance in weekly data. Therefore, the potential should be limited. However, a further bullish movement when crossing this resistance will be a positive signal.

● The stock is close to a major daily resistance at USD 275.87, which should be gotten rid of so as to gain new appreciation potential.

● Prospects from analysts covering the stock are not consistent. Such dispersed sales estimates confirm the poor visibility into the group's activity.

● Based on current prices, the company has particularly high valuation levels.

● The company's valuation in terms of earnings multiples is rather high. Indeed, the firm is getting paid 287.27 times its estimated earnings per share for the ongoing year.

● The appreciation potential seems limited due to the average target prices set by the analysts covering the stock.

MarketScreener.com 2020
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