Zoom Video shares were named the highest conviction pick for 2021 by a Bernstein analyst.
Bernstein has an outperform rating on the video conferencing company’s stock, and a $610 price target. This followed news of Zoom sold 1 million seats for its phone service – a business that was introduced two years ago.
The analysts at Bernstein are sanguine that revenue from Zoom Phone will contribute substantial returns in a shorter period than many investors expect. The firm expects that Zoom Phone could surpass 8 million paid users by the end of calendar year 2022, and 13 million by the end of 2023.
Zoom Phone would have a market value of $80 billion by 2023, considering a multiple of 20 times price to sales – according to Bernstein.
Bernstein analyst Zane Chrane said that with all Zoom Phone users on paid plans (i.e., no free tier like with videoconferencing), related revenue could grow much more rapidly relative to the user count than has been the case with Zoom VC. "Such a growth trajectory would yield about $4 billion in annual recurring revenue by the end of calendar year 2023, at which point Phone should still be growing top line about 50% year over year" , the analyst added.
ZM saw its Momentum Indicator move below the 0 level on May 30, 2023. This is an indication that the stock could be shifting in to a new downward move. Traders may want to consider selling the stock or exploring put options. Tickeron's A.I.dvisor looked at 72 similar instances where the indicator turned negative. In of the 72 cases, the stock moved further down in the following days. The odds of a decline are at .
The 10-day RSI Indicator for ZM moved out of overbought territory on May 23, 2023. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 29 similar instances where the indicator moved out of overbought territory. In of the 29 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
ZM moved below its 50-day moving average on May 23, 2023 date and that indicates a change from an upward trend to a downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where ZM declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
ZM broke above its upper Bollinger Band on May 22, 2023. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 47 cases where ZM's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for ZM just turned positive on May 08, 2023. Looking at past instances where ZM's MACD turned positive, the stock continued to rise in of 35 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where ZM advanced for three days, in of 227 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 190 cases where ZM Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. ZM’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (2.996) is normal, around the industry mean (31.306). ZM's P/E Ratio (3333.333) is considerably higher than the industry average of (168.128). Projected Growth (PEG Ratio) (3.312) is also within normal values, averaging (4.122). Dividend Yield (0.000) settles around the average of (0.040) among similar stocks. P/S Ratio (4.507) is also within normal values, averaging (70.523).
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. ZM’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 89, placing this stock worse than average.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a developer of video-first communications platform and application
A.I.dvisor indicates that over the last year, ZM has been closely correlated with RNG. These tickers have moved in lockstep 69% of the time. This A.I.-generated data suggests there is a high statistical probability that if ZM jumps, then RNG could also see price increases.