Zoom Video (ZM, $504.73) launches events platform OnZoom

Zoom Video Communications  introduced several new features Wednesday, including a events platform.

The platform, called OnZoom, allows users “to create and host free, paid, and fundraising events,” Zoom Video said in a statement.

According to Zoom, hosts can grow their businesses, and expand their reach into new audiences, and give back through native donation integration, via OnZoom. Starting Wednesday, OnZoom wil be available as a public beta for U.S. users to attend events from small and medium-size businesses and flagship content partners like WW (formerly Weight Watchers) at OnZoom.com.

Zoom Video also announced a new product that ensures Zoom communications are encrypted using cryptographic keys.

Tickeron's analysis shows: 

Momentum Indicator for ZM turns positive, indicating new upward trend

ZM saw its Momentum Indicator move above the 0 level on October 12, 2020. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 27 similar instances where the indicator turned positive. In 26 of the 27 cases, the stock moved higher in the following days. The odds of a move higher are at 90%.

Current price $504.74 is above $294.68 the highest resistance line found by A.I. Throughout the month of 09/11/20 - 10/13/20, the price experienced a +35% Uptrend. During the week of 10/06/20 - 10/13/20, the stock enjoyed a +8% Uptrend growth.

Technical Analysis (Indicators)

Bullish Trend Analysis

ZM moved above its 50-day Moving Average on August 17, 2020 date and that indicates a change from a downward trend to an upward trend.

Following a +3.76% 3-day Advance, the price is estimated to grow further. Considering data from situations where ZM advanced for three days, in 88 of 97 cases, the price rose further within the following month. The odds of a continued upward trend are 90%.

The Aroon Indicator entered an Uptrend today. In 90 of 95 cases where ZM Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 90%.

Bearish Trend Analysis

The RSI Indicator demonstrated that the stock has entered the overbought zone. This may point to a price pull-back soon.

The Stochastic Indicator entered the overbought zone. Expect a price pull-back in the foreseeable future.

The Moving Average Convergence Divergence Histogram (MACD) for ZM turned negative on September 30, 2020. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 13 similar instances when the indicator turned negative. In 9 of the 13 cases the stock turned lower in the days that followed. This puts the odds of success at 69%.

Following a 3-day decline, the stock is projected to fall further. Considering past instances where Apple declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 71%.

ZM broke above its upper Bollinger Band on October 13, 2020. 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.

Fundamental Analysis (Ratings)

Tickeron has a positive outlook on this ticker and predicts a further increase by more than 4.00% within the next month with a likelihood of 88%. During the last month, the daily ratio of advancing to declining volumes was 1.79 to 1.

The Tickeron SMR rating for this company is 23 (best 1 - 100 worst), indicating very strong sales and a profitable 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 Price Growth Rating for this company is 34 (best 1 - 100 worst), indicating steady price growth. ZM’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.

The Tickeron PE Growth Rating for this company is 96 (best 1 - 100 worst), pointing to worse than average 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 Valuation Rating of 100 (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: ZM's P/B Ratio (123.05) is slightly higher than the industry average of (8.67). P/E Ratio (667.77) is within average values for comparable stocks, (341.91). Projected Growth (PEG Ratio) (0.17) is also within normal values, averaging (7.05). Dividend Yield (0.00) settles around the average of (0.31) among similar stocks. P/S Ratio (56.03) is also within normal values, averaging (16.25).

The Tickeron Profit vs. Risk Rating rating for this company is 100 (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 81, placing this stock worse than average.