In the latest trading session, Zoom Communications (ZM) closed at $90.64, marking a +2.15% move from the previous day. The stock outperformed the S&P 500, which registered a daily loss of 0.51%. At the same time, the Dow added 0.53%, and the tech-heavy Nasdaq lost 1.51%.
Shares of the video-conferencing company have appreciated by 3.46% over the course of the past month, outperforming the Computer and Technology sector's loss of 0.27%, and the S&P 500's gain of 0.93%.
The investment community will be paying close attention to the earnings performance of Zoom Communications in its upcoming release. The company is slated to reveal its earnings on February 25, 2026. In that report, analysts expect Zoom Communications to post earnings of $1.48 per share. This would mark year-over-year growth of 4.96%. Simultaneously, our latest consensus estimate expects the revenue to be $1.23 billion, showing a 4.08% escalation compared to the year-ago quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $5.96 per share and revenue of $4.85 billion, indicating changes of +7.58% and 0%, respectively, compared to the previous year.
Any recent changes to analyst estimates for Zoom Communications should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.22% higher. Zoom Communications currently has a Zacks Rank of #2 (Buy).
From a valuation perspective, Zoom Communications is currently exchanging hands at a Forward P/E ratio of 14.94. This expresses a discount compared to the average Forward P/E of 20.67 of its industry.
We can additionally observe that ZM currently boasts a PEG ratio of 5.21. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Software industry had an average PEG ratio of 1.17 as trading concluded yesterday.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 95, finds itself in the top 39% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Zoom Communications, Inc. (ZM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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