Sometimes a stock is cheap for all the right reasons. Sure, Wall Street is often too focused on the short term, and that pessimism can create attractive buying opportunities for patient investors. But in cases where a stock's plummeted from its highs, the slump could be tied to negative and potentially enduring changes in the company's earnings outlook.
The main challenge for investors seeking a bargain is being able to separate those stocks that are being penalized for temporary issues from those being penalized for the more permanent variety.
But which category applies to Zoom Video Communications (NASDAQ: ZM)? This video communications specialist enjoyed massive growth during the early phases of the pandemic. Now it's trailing the market by a wide margin. Is this a temporary or permanent situation? Let's take a look.
Source Fool.com