#2 - Zoom (NASDAQ:ZM)
“Zoom” has become a verb during the pandemic as work, school, and social gatherings have made Zoom Communications (NASDAQ:ZM) an essential service. And the stock shows it. ZM stock is up over 700% for the year. However, the stock now has what Jim Cramer describes as a “nosebleed valuation,” which may be a good signal to avoid turning your gain into a loss.
Analysts seem to agree. The stock has a consensus rating of hold, but its 12-month price target suggests that stock may drop nearly 25%. At the same time, it’s fair to say that you can’t apply a fair valuation to Zoom with a 300% growth forecast. However, analysts are starting to factor in the availability of a vaccine. Even if that takes the better part of 2021 to be widely available, getting the most vulnerable population vaccinated would be a potential headwind on Zoom’s meteoric growth.
Zoom is not going away, and there is still a bullish case to be made. But it could be a good example of where pigs get fat, but hogs get slaughtered. There’s no problem with taking some of these profits now.
About Zoom Video Communications
Zoom Video Communications, Inc provides unified communications platform in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. The company offers Zoom Meetings that offers HD video, voice, chat, and content sharing through mobile devices, desktops, laptops, telephones, and conference room systems; Zoom Phone, an enterprise cloud phone system; and Zoom Chat enables users to share messages, images, audio files, and content in desktop, laptop, tablet, and mobile devices.
Read More - Current Price
- $85.60
- Consensus Rating
- Hold
- Ratings Breakdown
- 9 Buy Ratings, 14 Hold Ratings, 2 Sell Ratings.
- Consensus Price Target
- $87.10 (1.7% Upside)
