During the last three months, 22 analysts shared their evaluations of Zoom Communications (NASDAQ:ZM), revealing diverse outlooks from bullish to bearish.
The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 6 | 5 | 10 | 1 | 0 |
| Last 30D | 1 | 0 | 0 | 0 | 0 |
| 1M Ago | 3 | 3 | 8 | 1 | 0 |
| 2M Ago | 0 | 0 | 1 | 0 | 0 |
| 3M Ago | 2 | 2 | 1 | 0 | 0 |
Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $89.5, along with a high estimate of $115.00 and a low estimate of $70.00. Observing a 15.56% increase, the current average has risen from the previous average price target of $77.45.
Investigating Analyst Ratings: An Elaborate Study
The analysis of recent analyst actions sheds light on the perception of Zoom Communications by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Samad Samana | Jefferies | Raises | Buy | $100.00 | $85.00 |
| Meta Marshall | Morgan Stanley | Raises | Equal-Weight | $96.00 | $86.00 |
| Ryan Macwilliams | Barclays | Raises | Equal-Weight | $85.00 | $70.00 |
| Siti Panigrahi | Mizuho | Raises | Outperform | $105.00 | $90.00 |
| Catharine Trebnick | Rosenblatt | Raises | Buy | $95.00 | $78.00 |
| Matthew Harrigan | Benchmark | Raises | Buy | $97.00 | $85.00 |
| Peter Levine | Evercore ISI Group | Raises | Outperform | $115.00 | $70.00 |
| Peter Weed | Bernstein | Raises | Market Perform | $89.00 | $78.00 |
| Nikolay Beliov | B of A Securities | Raises | Neutral | $90.00 | $75.00 |
| Karl Keirstead | UBS | Raises | Neutral | $90.00 | $75.00 |
| Rishi Jaluria | RBC Capital | Maintains | Outperform | $95.00 | $95.00 |
| Kash Rangan | Goldman Sachs | Raises | Neutral | $86.00 | $72.00 |
| Parker Lane | Stifel | Raises | Hold | $90.00 | $70.00 |
| Michael Turrin | Wells Fargo | Raises | Underweight | $70.00 | $60.00 |
| James Fish | Piper Sandler | Raises | Neutral | $89.00 | $68.00 |
| Catharine Trebnick | Rosenblatt | Maintains | Buy | $78.00 | $78.00 |
| Meta Marshall | Morgan Stanley | Raises | Equal-Weight | $86.00 | $68.00 |
| Daniel Ives | Wedbush | Raises | Outperform | $85.00 | $80.00 |
| Parker Lane | Stifel | Raises | Hold | $70.00 | $65.00 |
| Rishi Jaluria | RBC Capital | Maintains | Outperform | $95.00 | $95.00 |
| Matthew Harrigan | Benchmark | Raises | Buy | $85.00 | $83.00 |
| Catharine Trebnick | Rosenblatt | Maintains | Buy | $78.00 | $78.00 |
Key Insights: Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Zoom Communications. This information offers a snapshot of how analysts perceive the current state of the company. Rating: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Zoom Communications compared to the broader market. Price Targets: Gaining insights, analysts provide estimates for the future value of Zoom Communications's stock. This comparison reveals trends in analysts' expectations over time.
Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of Zoom Communications's market standing. Stay informed and make data-driven decisions with our Ratings Table.
Stay up to date on Zoom Communications analyst ratings.
Unveiling the Story Behind Zoom Communications
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.
Zoom Communications: A Financial Overview
Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.
Revenue Growth: Zoom Communications's remarkable performance in 3 months is evident. As of 31 October, 2024, the company achieved an impressive revenue growth rate of 3.59%. This signifies a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Information Technology sector.
Net Margin: Zoom Communications's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 17.58% net margin, the company effectively manages costs and achieves strong profitability.
Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of 2.41%, the company may need to address challenges in generating satisfactory returns for shareholders.
Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of 1.95%, the company may need to address challenges in generating satisfactory returns from its assets.
Debt Management: Zoom Communications's debt-to-equity ratio is below the industry average at 0.01, reflecting a lower dependency on debt financing and a more conservative financial approach.
Understanding the Relevance of Analyst Ratings
Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter.
Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.
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Latest Ratings for ZM
| Date | Firm | Action | From | To |
|---|---|---|---|---|
| Mar 2022 | Wolfe Research | Downgrades | Outperform | Peer Perform |
| Mar 2022 | RBC Capital | Maintains | Outperform | |
| Mar 2022 | Wells Fargo | Maintains | Equal-Weight |
View More Analyst Ratings for ZM
View the Latest Analyst Ratings
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
