Zoom Video Communications, Inc. (ZM)

ZM stock forecast: buy or sell

ZM stock outlook

  • After making all-time highs yesterday, Zoom Video Communications closed at $275.87 rising a 2.36%
  • Zoom Video Communications gained a 5.25% in 4 consecutive sessions in negative
  • The price is currently higher than the upper Bollinger band, which often indicates a short-term correction
  • Zoom Video Communications, Inc. provides a video-first communications platform in the Americas, the Asia Pacific, Europe, the Middle East, and Africa.
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Important:
The comments written in this post are personal and not recommendations for you to buy or sell stocks. The author of this paper does not have any knowledge of the individual positions of the reader, his or her own financial statements or his or her own best interests at any given time. All users should speak with their financial advisor before buying or selling any securities Thoughts are expressed for general educational reasons only

ZM stock chart overview

Should I buy Zoom Video Communications stock?

Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best

Is ZM stock a buy?

Currently, Zoom Video Communications stock doesn't match any of these trading strategies, so our recommendation is not to buy now. This doesn't mean ZM will slide in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems

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Should I sell Zoom Video Communications stock?

"To sell or not to sell", if you are holding Zoom Video Communications stock?. Similarly to when we have to buy shares, deciding when is appropiate to sell is not a capricious decision, and we must adhere our own trading style. When selling, as well as buying, our setups are very easy to use but are only valid for selling shares in your porfolio, not for shorting ZM stock

A golden rule is that you should never hold a trading operation that yields greater losses than those expected upon the buy. The timing to sell shares must always be dictated by the stop-loss (automatic or manual)

Is it time to sell Zoom Video Communications stock?

Currently, Zoom Video Communications stock doesn't match any of our preferred sell setups, so if you own Zoom Video Communications shares and your operation is in profit probably is not time to sell now

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Analysts' recommendations to buy or sell Zoom Video Communications stock

Brokerage firms and financial institutions post stock ratings based on their views of the market and the fundamental and technical situation of the analyzed stock. Unfortunately, the accuracy of these predictions is not very high, and certainly not a direct buy or sell signal

In the last 30 days, just one rating was published for Zoom Video Communications

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Zoom Video Communications ratings

Brokerage firmRating
Jun 24th, 2020
Goldman Sachs Group NeutralStrong sell

Technical analysis

ZM at Highs

Yesterday, Zoom Video Communications marked new all-time highs (ATH) again at $278.16. It's the third time in the last 10 sessions, marking an important rally

SMAs overview

Moving averages are indicators for traders to detect direction. A moving average is calculated as the simple mean of the previous N periods (usually sessions). Usual time periods used for moving averages are 21 days, 50 days, 100 days and 200 days. Learn more about Moving Averages from sources like Wikipedia and Investopedia

Supports and resistances

Investors use supports and resistances as a way to identify price points in the stock price action that may work as glass ceiling, containing the price of an asset to move in certain direction. Supports are levels where the price tends to find support as it falls. This means that the price is more likely to "rebound" this level rather than break through it. However, if the price breaks down the support, it will probably continue falling until approaching another support level. On the other side, a resistance level is where the price tends to find a curb as it rises. In the same way, the price is more liable to "bounce off" at this level, and if it finally crosses this level, it will climb easily until it meets the next resistance

Price is at highs and there are not upper resistance levels.

The current supports are:

  • S1: $181.50 (-34.21% below)
  • S2: $177.80 (-35.55% below)
  • S3: $164.94 (-40.21% below)
  • Bollinger bands

    The so-called Bollinger bands are a well-established technique designed by John Bollinger. By essence, the Bollinger Bands are bands that flow around a centralmoving average, varying the distance from the bottom to the top depending on market volatility. They are usually plotted by an interval of two standard deviations, above and below, from a moving average line. Bollinger himself recommends the moving average period to be 20

    When the price moves out of the band (above the upper line or below the lower line) it indicates that the price is currently maintaining a very strong momentum and therefore can reverse the trend to the average. For this case, the price is beyond the upper band, and that should mean a near-term adjustment (at least) until it is below the band

    Relative strength index

    The relative strength index (RSI) is a technical indicator used in the analysis of stock markets. Its objective is to chart the current and previous strength or weakness of a stock or market based on the closing prices of a recent trading period. Oscillator indicators, such as relative strength, are designed to indicate values in the range of 0-100. The relative strength indicator is one of the best known and most widely used indicators, and it was invented by J. Welles Wilder in the late 1970s

    RSI crossed up the 70 level yesterday, marking a value of 76.83. Breaking out above the level of 70 is not a bearish signal, as stock price can rise during several weeks being above 70

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    Earnings and financials

    In early June, ZM had the shareholders event and posted the Q2 report. ZM surpassed Wall St estimates and reported a per-share earnings of %s of $0.20, that is a 122.22% better than expected versus the estimates of $0.09. Reported sales were $328.2 million versus estimates of $203.5 million.

    Same quarter last year, reported EPS was $0.03, so recently posted EPS means an increase of 566.67%. Revenue skyrocketed a 169.01% on an annualized basis in the second-quarter, from $122.0M to $328.2M last quarter.

    ZM is hosting the earnings call next September. Market analysts analysts predict earnings of %s a share of $0.44, that is a 120% more than Q2. Earnings reporting day has an additional risk for stock traders as the data disclosed can soar and sink the stock price with lower volume and not honouring your buy or stop-loss orders. You can obtain more details about the earnings conference call and the earnings reports on the Investor Relations section of its website: http://www.zoom.us.

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