Is Cisco a Safer “Remote Work” Play than Zoom Video for the Coronavirus Crisis?
Zoom Video Communications (NASDAQ: ZM) was a rare bright spot for investors during the recent market sell-off. Zoom's stock more than doubled this year as the novel coronavirus (COVID-19) pandemic forced more people to work from home and use its collaboration services.
Zoom expects its revenue and non-GAAP earnings to rise 46% and 24%, respectively, this year. Those growth rates are impressive, but the stock already trades at over 300 times forward earnings -- which suggests it's overvalued at current levels.
Therefore, investors looking for a safer play on the video collaboration market should check out better-diversified tech companies with lower valuations and wider moats. Cisco (NASDAQ: CSCO), which competes against Zoom with its Webex service, fits that description.
Source Fool.com
