It is a comprehensive communications ecosystem that includes team chat platforms, online whiteboards, VoIP phone service, workspaces, email, and other services. And yet the business performed solidly throughout the past few years even as the stock fell. Zoom Video Communications scored higher than 83% of companies evaluated by MarketBeat, and ranked 167th out of 647 stocks in the computer and technology sector. Scores are calculated by averaging available category scores, with extra weight given to analysis and valuation. Investors should also note any recent changes to analyst estimates for Zoom Video Communications.

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Then there is the endorsement of Ark Investment Management’s CEO Cathie Wood, whose bold predictions regarding other tech stocks (like Tesla and Bitcoin) have come to pass. Wood and her team predicted a $1,500-per-share price target for Zoom by 2026, a 22-fold gain from current levels. One should further note that ZM currently holds a PEG ratio of 3.5. This metric is used similarly to the famous P/E ratio, but the PEG u s. dollar index futures ratio also takes into account the stock’s expected earnings growth rate.

Analyst Ratings Changes

ZM stock trades relatively undervalued at just 14.7 times forward earnings. Our proprietary Zacks ESP indicator is not conclusively predicting another earnings beat. Keep in mind that stocks can be volatile in the aftermath of earnings announcements. You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security.

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Zoom Video Communications provides a communications platform that connects people through video, voice, chat, and content sharing. The company’s cloud-native platform enables face-to-face video and connects users across various devices and locations in a single meeting. Zoom, which was founded in 2011 and is headquartered in San Jose, California, serves companies of all sizes from all industries around the world. Given the state of the company, investors should consider Zoom stock.

For that period, the company reported net income of $672.3 million on revenue of $2.7 billion. However, Zoom has rapidly turned into a value stock that returns a respectable level of free-cash-flow growth. If Zoom can start monetizing some of the AI potential Ark Invest sees, it could inspire another bull market in its stock. The one area of modest strength is non-GAAP (adjusted) free cash flow, which increased almost 14% yearly to more than $1.1 billion in the first three quarters of 2023.

Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month. A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return. The monthly returns are then compounded to arrive at the annual return. Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations. Zacks Ranks stocks can, and often do, change throughout the month. Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations.

1. Charles Schwab Investment Management Inc. now owns 1,297,443 shares of the company’s stock valued at $90,484,000 after purchasing an additional 78,940 shares during the period.
2. After all, it’s nearly impossible for a company to increase its earnings for an extended period without increasing its revenues.
3. Zoom even initiated new growth efforts, building out an artificial intelligence (AI)-driven communications ecosystem.
4. This analysis delves into the latest insights on Zoom Video Comms.

ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities. Sort by estimates, projected upside, profit surprises, and more to easily find new stocks to invest in or check up on your portfolio. The market awaits Zoom Video Comms’s announcement, with hopes high for news of surpassing estimates and providing upbeat guidance for the next quarter. As mentioned above, on Sept. 30, 2021, Five9 announced that the two parties had mutually agreed to abandon the deal.

Such recent modifications usually signify the changing alpari review landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook. Coming into today, shares of the video-conferencing company had gained 9.37% in the past month.

Still, the bear estimate calls for a $700-per-share How to buy bnb or less stock price, amounting to more than a 10-fold gain from current levels if that price target holds. The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Right now, Zoom Video Communications possesses a Zacks Rank of #2 (Buy). For the current fiscal year, the consensus earnings estimate of $5.34 points to a change of +2.5% from the prior year. For the current quarter, Zoom Video is expected to post earnings of $1.31 per share, indicating a change of +1.6% from the year-ago quarter.

Other competitors are unified communications as a service (UCaaS) and legacy private bank exchange (PBX) providers such as 8×8 Inc. (EGHT), Avaya Holdings Corp. (AVYA), and RingCentral Inc. (RNG). The investment community will be closely monitoring the performance of Zoom Video Communications in its forthcoming earnings report. The company is scheduled to release its earnings on November 25, 2024.