Zoom Communications: Sell ZM Stock Now?
For event-driven traders, this history is informative, though the actual reaction will hinge on how results stack up against consensus and broader expectations. Two approaches that may leverage this dataset are:
Current consensus forecasts call for earnings per share of $1.38 on revenue of $1.2 billion for the quarter, versus $1.39 EPS on $1.16 billion in revenue in the same quarter last year.
From a fundamentals perspective, Zoom's market capitalization stands at $22 billion. Over the trailing twelve months, the company generated $4.7 billion in revenue, delivered operating profit of $852 million, and recorded net income of $1.0 billion. Also, see Buy or Sell Zoom Stock.
If you prefer pursuing upside with lower single-stock volatility, the Trefis High Quality portfolio offers an alternative — it has outperformed the S&P 500 and produced returns of over 91% since inception. Also, see – Buy IBM Stock At $240?
See earnings reaction history of all stocks
Zoom Communications' Historical Odds Of Positive Post-Earnings Return
Key notes on one-day (1D) post-earnings moves:
Additional detail on 5-Day (5D) and 21-Day (21D) post-earnings returns, plus summary statistics, appears in the table below.
Correlation Between 1D, 5D, and 21D Historical Returns
A relatively lower-risk tactic (though not useful if correlations are weak) is to identify the strongest link between short- and medium-term returns after earnings, then trade accordingly. For example, if 1D and 5D are most correlated, a positive 1D reaction could support a short-term 'long' stance for the next 5 days. Here is correlation data based on both a 5-year window and a more recent 3-year window. Also, see – Buy or Fear ZM Stock?
Is There Any Correlation With Peer Earnings?
Peer performance can sometimes shape post-earnings reactions, with pricing-in even occurring ahead of the release. Below is historical context comparing Zoom Communications' post-earnings 1D returns with those of peers that reported shortly before Zoom.
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