In the latest trading session, Zoom Communications (ZM) closed at $91.12, marking a +2.79% move from the previous day. The stock exceeded the S&P 500, which registered a gain of 0.56% for the day. Elsewhere, the Dow gained 0.26%, while the tech-heavy Nasdaq added 0.78%.
The video-conferencing company's shares have seen an increase of 9.01% over the last month, surpassing the Computer and Technology sector's loss of 4.09% and the S&P 500's loss of 1.27%.
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. On that day, Zoom Communications is projected to report earnings of $1.48 per share, which would represent year-over-year growth of 4.96%. At the same time, our most recent consensus estimate is projecting a revenue of $1.23 billion, reflecting a 4.08% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $5.96 per share and revenue of $4.85 billion. These totals would mark changes of +7.58% and +4%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Zoom Communications. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. As of now, Zoom Communications holds a Zacks Rank of #3 (Hold).
In terms of valuation, Zoom Communications is currently trading at a Forward P/E ratio of 14.93. Its industry sports an average Forward P/E of 19.47, so one might conclude that Zoom Communications is trading at a discount comparatively.
Meanwhile, ZM's PEG ratio is currently 5.2. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ZM's industry had an average PEG ratio of 1.1 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 128, positioning it in the bottom 48% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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