Home > Boards > Free Zone > Big Board Trading - Technical > $Stock*Shop*Charts*News*Option$

Zoom (ZM) Stock Scores Upgrade Ahead of Next

Public Reply | Private Reply | Keep | Last ReadPost New MsgNext 10 | Previous | Next
DiscoverGold Member Profile
Member Level 
Followed By 573
Posts 78,433
Boards Moderated 44
Alias Born 03/10/04
160x600 placeholder
DiscoverGold Member Level  Friday, 08/27/21 01:10:10 PM
Re: None
Post # of 612303 
Zoom (ZM) Stock Scores Upgrade Ahead of Next Week's Earnings
By: Schaeffer's Investment Research | August 27, 2021

• Morgan Stanley upgraded the tech stock to "overweight" with a $400 price target

• There is still plenty of room for other analysts to follow suit

Zoom Video Communications Inc (NASDAQ: ZM) is capturing the attention of at least one brokerage firm ahead of its second-quarter earnings report, which is due out after the close on Monday, Aug. 30. The equity earned an upgrade to "overweight" from Morgan Stanley, as well as a price-target hike to $400 from $360. The analyst said Zoom is likely to beat growth estimates over the next 12 months, and that international business will continue to outperform. Additionally, the firm cited enterprise momentum, combined with dissipating margin headwinds. At last check, ZM is up 0.6% to trade at $342.55.

The security has had a mixed history of post-earnings reactions, finishing four of its past eight next-day sessions higher, while four were lower. However, the company did post a 40.8% pop in September 2020. This time around, options traders are pricing in a 10.4% next-day swing for the equity, which is slightly smaller than the 12.2% move ZM averaged over the past two years, regardless of direction.

The brokerage bunch was cautious towards ZM coming into today. Of the 19 analysts in coverage, 11 gave it a tepid "hold" rating, while eight said "buy" or better. In other words, there is still plenty of room for upgrades going forward, which would push the security higher.

Meanwhile, the options pits are firmly in the bullish camp. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), ZM's 50-day call/put volume ratio of 2.84 stands higher than 98% of readings from the past year. This means long calls have been getting picked up at a much quicker-than-usual clip.

This year has been a volatile one for Zoom stock. The $410 level has been rejecting rally attempts since early July. More recently, the $330 level has emerged as a floor for the shares, while the 20-day moving average remains as another level of resistance so far. Year-over-year, ZM is up 15.8%.

Lastly, the security's Schaeffer's Volatility Scorecard (SVS) reads at a high 84 out of 100, meaning the stock has exceeded option traders' volatility expectations during the past year -- a good thing for buyers.

Read Full Story »»»



DiscoverGold

Information posted to this board is not meant to suggest any specific action, but to point out the technical signs that can help our readers make their own specific decisions. Caveat emptor!
• DiscoverGold
Public Reply | Private Reply | Keep | Last ReadPost New MsgNext 10 | Previous | Next
Follow Board Follow Board Keyboard Shortcuts Report TOS Violation
X
Current Price
Change
Volume
Detailed Quote - Discussion Board
Intraday Chart
+/- to Watchlist
Consent Preferences