2024-05-06 10:28:54 ET
Summary
- Zoom's stock has fallen ~10% year to date and is currently trading at a cheap valuation of ~8x ex-cash P/E.
- The company recently announced a $1.5 billion buyback program, which could help boost EPS by 3% on this buyback alone.
- Its outlook for FY25 is conservative especially on operating margins, despite recent cost-cutting measures.
- The next catalyst for Zoom is its Q1 earnings release on May 20. Investors should buy Zoom ahead of that earnings date.
If there's one stock that seemingly can never catch a break, it's Zoom ( ZM ). Once the hottest trade of the year during the pandemic, Zoom has faltered over the past couple of years, falling ~10% year to date after seeing ~flat price action over the past two years and falling from a pandemic-era high above $500. Once thought to be a company that could cross into tech mega-market cap territory, Zoom has now languished in penalty-bucket territory: despite the fact that its software is still the infrastructure by which the modern office runs today....
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For further details see:
Zoom: Unlock The Value In This Stock Ahead Of Earnings