Piper Sandler analysts at key levels ahead of report

Piper Sandler analysts at key levels ahead of report

It’s Zoom’s moment of truth.

Home play will return profits after Monday’s bell, the next catalyst for a stock that has fallen out of favor this year after surging nearly five times in 2020.

“I don’t know if this is a zoom or a boom,” Craig Johnson, chief market technician at Piper Sandler, told CNBC’s “Trading Nation” Friday. “The stock has grown tremendously in 2020. It’s based on months now.”

In a separate email to CNBC, Johnson said the options market was showing 9% up or down, the key stock for the stock that has rallied in recent months. Zoom has not seen a move of this size since March.

Johnson says it pays to have a wait-and-see approach to this stock.

“I’ll wait until the stock sees if we can technically recover that 50 and 200 day moving average. Even though our fundamental analysts like it, I’ll see it. I’m going to wait if we can get back to that level at around $ 365, so I’m keeping that title printed, ”he said.

Zoom closed at $ 340.81 on Friday. The stock would need a gain of 7% to reach this level.

But, Steve Chiavron, portfolio manager of Federated Hermes, predicts a stronger headwind for Zoom and other home stocks like this.

“All signs point to a potential Delta spike and we think as soon as these cases peak, stocks will smell it and businesses will reopen – things like casinos, things like hotels, things like airlines. – I’m going to have a big relief rally. This is where we get more opportunities, ”he said in the same interview.

According to FactSet estimates, Zoom expects to report second quarter earnings of $ 1.16 per share at the end of July, down from 92 cents per share a year ago. Sales are expected to increase by around 50%.

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