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Zoom Communications (ZM) Laps the Stock Market: Here's Why
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Zoom Communications (ZM - Free Report) closed the most recent trading day at $83.16, moving +1.8% from the previous trading session. The stock outperformed the S&P 500, which registered a daily gain of 1.54%. Elsewhere, the Dow saw an upswing of 0.81%, while the tech-heavy Nasdaq appreciated by 2.27%.
Shares of the video-conferencing company have appreciated by 1.76% over the course of the past month, outperforming the Computer and Technology sector's gain of 1.22%, and the S&P 500's gain of 0.29%.
Market participants will be closely following the financial results of Zoom Communications in its upcoming release. The company plans to announce its earnings on November 24, 2025. The company's earnings per share (EPS) are projected to be $1.43, reflecting a 3.62% increase from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $1.21 billion, indicating a 3% upward movement from the same quarter last year.
ZM's full-year Zacks Consensus Estimates are calling for earnings of $5.83 per share and revenue of $4.82 billion. These results would represent year-over-year changes of +5.23% and +4.25%, respectively.
Investors might also notice recent changes to analyst estimates for Zoom Communications. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 past month, the Zacks Consensus EPS estimate has moved 0.2% higher. Zoom Communications is currently a Zacks Rank #2 (Buy).
Looking at its valuation, Zoom Communications is holding a Forward P/E ratio of 14.01. This valuation marks a discount compared to its industry average Forward P/E of 29.82.
It is also worth noting that ZM currently has a PEG ratio of 6.97. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 1.97.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 69, placing it within the top 28% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Zoom Communications (ZM) Laps the Stock Market: Here's Why
Zoom Communications (ZM - Free Report) closed the most recent trading day at $83.16, moving +1.8% from the previous trading session. The stock outperformed the S&P 500, which registered a daily gain of 1.54%. Elsewhere, the Dow saw an upswing of 0.81%, while the tech-heavy Nasdaq appreciated by 2.27%.
Shares of the video-conferencing company have appreciated by 1.76% over the course of the past month, outperforming the Computer and Technology sector's gain of 1.22%, and the S&P 500's gain of 0.29%.
Market participants will be closely following the financial results of Zoom Communications in its upcoming release. The company plans to announce its earnings on November 24, 2025. The company's earnings per share (EPS) are projected to be $1.43, reflecting a 3.62% increase from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $1.21 billion, indicating a 3% upward movement from the same quarter last year.
ZM's full-year Zacks Consensus Estimates are calling for earnings of $5.83 per share and revenue of $4.82 billion. These results would represent year-over-year changes of +5.23% and +4.25%, respectively.
Investors might also notice recent changes to analyst estimates for Zoom Communications. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 past month, the Zacks Consensus EPS estimate has moved 0.2% higher. Zoom Communications is currently a Zacks Rank #2 (Buy).
Looking at its valuation, Zoom Communications is holding a Forward P/E ratio of 14.01. This valuation marks a discount compared to its industry average Forward P/E of 29.82.
It is also worth noting that ZM currently has a PEG ratio of 6.97. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 1.97.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 69, placing it within the top 28% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.