ZM: Is Zoom a Buy After Outperforming Earnings Expectations?

Zoom Video Communications (NASDAQ: ZM) is an American communications technology company headquartered in San Jose. Provides cloud-based remote conferencing services.

Diluted earnings per share in Q1 exploded more than 10-times to $0.97 per share from the year-ago period and exceeded the Street’s estimates of $0.62 per share by more than 56%

In the first quarter of 2021, the company's revenue grew by 191% year-on-year to $ 956 million. Free cash flow was $ 454 million. Net income non-GAAP increased to $ 402.1 million.

The consensus rating of Wall Street analysts for Zoom Video Communications Inc. is Moderate Buy (1.95), with a target price of $443.57, which is +36.32% compared to the current price at the time of writing. The earnings rating for Zoom Video Communications Inc. stock is Strong Buy (calculated from actual period earnings estimates revision (80% weight) and previous period earnings surprise (20% weight))

The company has a Neutral technical analysis rating based on Technical Indicators (ADX : 14.06, ATR14 : 14.20, CCI20 : 101.56, Chaikin Money Flow : 0.14, MACD : -0.17, Money Flow Index : 51.27, ROC : 12.94, RSI : 55.04, STOCH (14,3) : 85.78, STOCH RSI : 0.66, UO : 51.54, Williams %R : -14.22), Simple Moving Averages and Exponential Moving Averages.

Zoom's range of support level starts at $320.9, the last area is at the price of $306.46 per share. All calculations are based on pivot points technical analysis.

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