Should I buy Zoom Video Communications (ZM) – Zacks
Zoom Video Communications has received a consensus rating of Buy. The company’s average rating score is , and is based on 14 buy ratings, 14 hold ratings. Indeed, ZM rallied by as much as % at its peak during fueled by the trends in remote working and virtual learning, only to reverse.
Is zoom stock a buy –
Conventional wisdom says that a PEG ratio of 1 or less is considered good at par or undervalued to its growth продолжить.
– ZM Stock Price | Zoom Video Communications Inc. Stock Quote (U.S.: Nasdaq) | MarketWatch
Research and data are also available via online brokers or independent analysis sites like Morningstar. One reminder: Zoom trades on the Nasdaq under the ticker symbol ZM. Learn how to research stocks. If you’re still keen after doing some research, consider how Zoom stock would slot in among the rest of your portfolio.
Specifically, look at how diversified your portfolio is and what this new investment would mean for your asset allocation. A general guideline for investors is to spread money across different companies, industries and geographies, thereby reducing risk and exposure to any one stock’s sudden movements.
Would buying Zoom put you too deep into the technology sector? Would it tip your portfolio too far into stocks as a whole? As opposed to maintaining a balance between stocks and safer investments like bonds, something financial experts tend to suggest. Asking these kinds of questions, and keeping an eye on the big picture, can help you stay aligned with your investing goals. One way to invest in Zoom and diversify at the same time might be to buy an index fund or exchange-traded fund.
Index funds and ETFs track a market index and allow you to hold stock in hundreds of different companies within one fund. And there are a number of funds with Zoom among their holdings. Research and a sense of your overall portfolio can help you decide how much money to invest in Zoom. So, too, might your opinion on how long people will continue to work and dial in from home. But there’s more to consider.
Look at your overall financial situation and ask:. Will buying Zoom stock put my portfolio out of balance? Not too much in a single company or asset — that’s what investors often aim for. What do I need in the short term? When the goal is to grow money over time, the stock market has a solid track record. But it’s not a place to protect your short-term savings. And before investing, you might want to make sure you have cash set aside for an emergency. Financial experts often suggest having three to six months’ worth of living expenses at hand.
What’s my plan for continued investing? Making regular investments over time, known as dollar-cost averaging , helps keep you from buying into the market when prices are high. Remember, you can always buy more shares later. See our guide on how to buy stocks for more details, including a look at various order types you can place. View our list of the best brokers for stock trading. It remains to be seen what growth looks like in the coming quarters and years as the business normalizes.
However, even if the results from this quarter continue to hold steady into the future, that level of business performance would still be impressive. When Zoom was growing revenue in the triple digits during and , the market had the stock priced as if that growth would never slow.
While that was exciting if you were a shareholder, it made buying shares at that time a dicey proposition. On the flip side, the stock is now priced more reasonably, if not undervalued, for what’s likely to be Zoom’s business performance going forward.
While that wouldn’t be considered cheap, it is the lowest price-to-earnings multiple that Zoom has had since its IPO. For investors who believe Zoom’s strong results can continue for years to come , now might be the time to pick up some shares at a discount. Cost basis and return based on previous market day close. Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of Discounted offers are only available to new members.
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Stock Advisor. View Our Services. Our Purpose:. Latest Stock Picks. Key Points. Today’s Change. Current Price. Recent earnings show a business that continues to put up strong results despite the stock’s performance. Image source: Getty Images.