4 Top Tech Stocks For December

Zendesk, Inc. (ZEN - Get Rating)

ZEN offers software as a service (SaaS) for organizations located across North America, Latin America, the Middle East, Europe, Africa, Asia Pacific and Australia. The company’s flagship product, Zendesk Support, is a system for tracking, prioritizing, and resolving customer support tickets across various channels. Some of the other products by the company are Zendesk Chat, Zendesk Talk, Zendesk Sell, and Zendesk Explore. The company’s products are used by over 160,000 businesses globally.

In a recent development, ZEN announced a partnership with WhatsApp to allow businesses to provide real-time support across various messaging channels across web, social media, and mobile. Through this, ZEN wants to enhance rapid engagement with customers and widespread adoption of services.

During the third quarter that ended September 2020, ZEN’s revenue surged 24.4% year-over-year to $261.9 million. The company reached a major milestone by crossing a billion-dollar annual revenue run rate during the quarter. ZEN’s loss per share expanded to $0.35 compared to $0.31 loss in the same period last year.

The consensus estimate for revenue for the quarter ending December 2020 is $277.9 million, indicating a 20.9% year-over-year increase. Meanwhile, the EPS is likely to grow at the rate of 75% per annum over the next five years. The company expects revenue for the fourth quarter to be in the range of $274 – $279 million.

ZEN surged 75.5% year-to-date to close Wednesday’s trading session at $134.52, just 0.6% below its 52-week high at $135.30. Over the past six months, the stock has risen 64.2%.

ZEN is rated a “Strong Buy” in our POWR Ratings system. It holds a grade of “A” in Trade Grade, Buy & Hold Grade, and Peer Grade and a “B” in Industry Rank. The stock is also ranked #4 in the Software – Application industry.

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