Zoom Video Communications Stock Buy Hold or Sell Recommendation
| ZM Stock | USD 59.54 0.09 0.15% |
Allowing for the 90-day total investment horizon and your above-average risk tolerance, our recommendation regarding Zoom Video Communications is 'Strong Hold'. Macroaxis provides Zoom Video buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding ZM positions. The advice algorithm takes into account all of Zoom Video's available fundamental, technical, and predictive indicators you will find on this site. Key drivers impacting Zoom Video's buy or sell advice are summarized below:
Real Value 69.71 | Target Price 77.11 | Hype Value 59.74 | Market Value 59.54 |
A buy or sell recommendation provided by Macroaxis is an automated directive regarding whether to purchase or sell Zoom Video Communications given historical horizon and risk tolerance towards Zoom Video. When Macroaxis issues a 'buy' or 'sell' recommendation for Zoom Video Communications, the advice is generated through an automated system that utilizes algorithms and statistical models.
Zoom |
Execute Zoom Video Buy or Sell Advice
The Zoom recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Zoom Video Communications. Macroaxis does not own or have any residual interests in Zoom Video Communications or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Zoom Video's advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Strong Hold
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Under hyped | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Almost mirrors the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Inapplicable | Details | |
Reporting Quality (M-Score) | Unavailable | Details |
Zoom Video Trading Alerts and Improvement Suggestions
| Zoom Video generated a negative expected return over the last 90 days | |
| About 67.0% of the company outstanding shares are owned by institutional investors | |
| Latest headline from investing.com: Zoom CFO Steckelberg sells 297k in company stock |
Zoom Video Returns Distribution Density
The distribution of Zoom Video's historical returns is an attempt to chart the uncertainty of Zoom Video's future price movements. The chart of the probability distribution of Zoom Video daily returns describes the distribution of returns around its average expected value. We use Zoom Video Communications price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Zoom Video returns is essential to provide solid investment advice for Zoom Video.
| Mean Return | -0.19 | Value At Risk | -2.55 | Potential Upside | 2.55 | Standard Deviation | 1.85 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Zoom Video historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
Zoom Stock Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Zoom Video is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Zoom Video Communications backward and forwards among themselves. Zoom Video's institutional investor refers to the entity that pools money to purchase Zoom Video's securities or originates loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Geode Capital Management, Llc | 2023-12-31 | 4 M | Two Sigma Advisers, Llc | 2023-12-31 | 4 M | Alkeon Capital Management, Llc | 2023-12-31 | 3.4 M | Fidelity International Ltd | 2023-12-31 | 3.1 M | Two Sigma Investments Llc | 2023-12-31 | 2.8 M | Goldman Sachs Group Inc | 2023-12-31 | 2.8 M | Morgan Stanley - Brokerage Accounts | 2023-12-31 | 2.8 M | Norges Bank | 2023-12-31 | 2.3 M | Millennium Management Llc | 2023-12-31 | 2.2 M | Vanguard Group Inc | 2023-12-31 | 23.4 M | Blackrock Inc | 2023-12-31 | 14.3 M |
Zoom Video Cash Flow Accounts
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Change To Inventory | 19.4M | 20.9M | 176.8M | (42.1M) | (48.4M) | (46.0M) | |
| Investments | (499.5M) | (1.6B) | (2.7B) | (318.3M) | (1.2B) | (1.2B) | |
| Change In Cash | 268.1M | 2.0B | (1.2B) | 26.9M | 465.1M | 488.4M | |
| Free Cash Flow | 113.7M | 1.4B | 1.5B | 1.2B | 1.5B | 775.6M | |
| Depreciation | 16.4M | 28.9M | 48.2M | 82.3M | 104.5M | 109.7M | |
| Other Non Cash Items | 42.9M | 142.3M | 218.6M | 392.3M | 171.1M | 137.5M | |
| Capital Expenditures | 38.2M | 85.8M | 145.6M | 115.1M | 127.0M | 76.5M | |
| Net Income | 25.3M | 672.3M | 1.4B | 103.7M | 637.5M | 387.5M | |
| End Period Cash Flow | 334.1M | 2.3B | 1.1B | 1.1B | 1.6B | 908.0M | |
| Change To Netincome | 85.3M | 345.8M | 190.6M | 1.4B | 1.6B | 1.6B |
Zoom Video Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Zoom Video or Software sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Zoom Video's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Zoom stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over NYSE Composite | -0.27 | |
β | Beta against NYSE Composite | 1.05 | |
σ | Overall volatility | 1.87 | |
Ir | Information ratio | -0.15 |
Zoom Video Volatility Alert
Zoom Video Communications exhibits very low volatility with skewness of 1.18 and kurtosis of 5.18. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Zoom Video's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Zoom Video's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.Zoom Video Implied Volatility
Zoom Video's implied volatility exposes the market's sentiment of Zoom Video Communications stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Zoom Video's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Zoom Video stock will not fluctuate a lot when Zoom Video's options are near their expiration.
Zoom Video Fundamentals Vs Peers
Comparing Zoom Video's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Zoom Video's direct or indirect competition across all of the common fundamentals between Zoom Video and the related equities. This way, we can detect undervalued stocks with similar characteristics as Zoom Video or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Zoom Video's fundamental indicators could also be used in its relative valuation, which is a method of valuing Zoom Video by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare Zoom Video to competition |
| Fundamentals | Zoom Video | Peer Average |
| Return On Equity | 0.0896 | -0.31 |
| Return On Asset | 0.0414 | -0.14 |
| Profit Margin | 0.14 % | (1.27) % |
| Operating Margin | 0.10 % | (5.51) % |
| Current Valuation | 11.39 B | 16.62 B |
| Shares Outstanding | 260.9 M | 571.82 M |
| Shares Owned By Insiders | 8.84 % | 10.09 % |
| Shares Owned By Institutions | 66.83 % | 39.21 % |
| Number Of Shares Shorted | 12.67 M | 4.71 M |
| Price To Earning | 32.52 X | 28.72 X |
| Price To Book | 2.36 X | 9.51 X |
| Price To Sales | 4.19 X | 11.42 X |
| Revenue | 4.53 B | 9.43 B |
| Gross Profit | 3.29 B | 27.38 B |
| EBITDA | 519.96 M | 3.9 B |
| Net Income | 637.46 M | 570.98 M |
| Cash And Equivalents | 1.09 B | 2.7 B |
| Cash Per Share | 17.67 X | 5.01 X |
| Total Debt | 72.95 M | 5.32 B |
| Debt To Equity | 0.02 % | 48.70 % |
| Current Ratio | 3.24 X | 2.16 X |
| Book Value Per Share | 26.07 X | 1.93 K |
| Cash Flow From Operations | 1.6 B | 971.22 M |
| Short Ratio | 3.87 X | 4.00 X |
| Earnings Per Share | 2.07 X | 3.12 X |
| Price To Earnings To Growth | 4.75 X | 4.89 X |
| Target Price | 77.27 | |
| Number Of Employees | 7.42 K | 18.84 K |
| Beta | -0.078 | -0.15 |
| Market Capitalization | 18.28 B | 19.03 B |
| Total Asset | 9.93 B | 29.47 B |
| Retained Earnings | 2.79 B | 9.33 B |
| Working Capital | 6.16 B | 1.48 B |
Note: Disposition of 5007 shares by Kelly Steckelberg of Zoom Video subject to Rule 16b-3 [view details]
Zoom Video Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Zoom . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
| Accumulation Distribution | 57518.3 | |||
| Daily Balance Of Power | 0.0756 | |||
| Rate Of Daily Change | 1.0 | |||
| Day Median Price | 59.48 | |||
| Day Typical Price | 59.5 | |||
| Price Action Indicator | 0.11 | |||
| Period Momentum Indicator | 0.09 |
About Zoom Video Buy or Sell Advice
When is the right time to buy or sell Zoom Video Communications? Buying financial instruments such as Zoom Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.| 2021 | 2022 | 2023 | 2024 (projected) | Other Current Liabilities | 409.7M | 434.9M | 435.4M | 251.4M | Total Assets | 7.6B | 8.1B | 9.9B | 10.4B |
Use Investing Ideas to Build Portfolios
In addition to having Zoom Video in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Corona Opportunity Thematic Idea Now
Corona Opportunity
Firms that are involved in some capacity in making products or providing services to the public to buttle the virus directly or indirectly. This also includes some defencive and contrarian stocks and ETFs that are managing to avoid the big market correction coused by coronavirus. The Corona Opportunity theme has 46 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Corona Opportunity Theme or any other thematic opportunities.
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Check out Zoom Video Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. You can also try the AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Complementary Tools for Zoom Stock analysis
When running Zoom Video's price analysis, check to measure Zoom Video's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Zoom Video is operating at the current time. Most of Zoom Video's value examination focuses on studying past and present price action to predict the probability of Zoom Video's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Zoom Video's price. Additionally, you may evaluate how the addition of Zoom Video to your portfolios can decrease your overall portfolio volatility.
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Is Zoom Video's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Zoom Video. If investors know Zoom will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Zoom Video listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 1.841 | Earnings Share 2.07 | Revenue Per Share 15.053 | Quarterly Revenue Growth 0.026 | Return On Assets 0.0414 |
The market value of Zoom Video Communications is measured differently than its book value, which is the value of Zoom that is recorded on the company's balance sheet. Investors also form their own opinion of Zoom Video's value that differs from its market value or its book value, called intrinsic value, which is Zoom Video's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Zoom Video's market value can be influenced by many factors that don't directly affect Zoom Video's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Zoom Video's value and its price as these two are different measures arrived at by different means. Investors typically determine if Zoom Video is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Zoom Video's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.