And when a stock’s fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements. At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Since 1988 it has more than doubled the S&P 500 with an average gain of +24.10% per year. These returns cover a period from January 1, 1988 through October 7, 2024.

In that same time, the Computer and Technology a look at the current trading paradigm sector gained 0.18%, while the S&P 500 gained 0.62%. Zoom Video reported revenues of $1.16 billion in the last reported quarter, representing a year-over-year change of +2.1%. Analysts have given Zoom Video Comms a total of 6 ratings, with the consensus rating being Buy. The average one-year price target is $83.17, indicating a potential 2.43% upside. During that period, its net income of $339 million surged 63% higher.

Stifel Nicolaus upped their target price on Zoom Video Communications from $65.00 to $70.00 and gave the stock a “hold” rating in a research report on Thursday, October 10th. Needham & Company LLC reissued a “hold” rating on shares of Zoom Video Communications in a research note on Friday, October 11th. Finally, Bank of America cut their price target on shares of Zoom Video Communications from $78.00 to How to buy arcade $75.00 and set a “neutral” rating on the stock in a report on Thursday, August 22nd. Two research analysts have rated the stock with a sell rating, thirteen have assigned a hold rating and six have issued a buy rating to the stock.

Should you invest $1,000 in Zoom Video Communications right now?

That valuation positions the stock for a massive surge if the company can stoke a recovery in revenue growth. Founded in 1993, The Motley Fool is a financial services company dedicated to making the world smarter, happier, and richer. The Motley Fool reaches millions of people every month through our premium investing solutions, free guidance and market analysis on Fool.com, top-rated podcasts, and non-profit The Motley Fool Foundation. Several other hedge funds also recently modified their holdings of the company. Charles Schwab Investment Management Inc. lifted its stake in shares of Zoom Video Communications by 6.5% in the 3rd quarter. 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.

Zoom Video Communications, Inc.

The company said that the agreement had not received the required number of votes from Five9 shareholders to approve the merger. Earlier in September, The Wall Street Journal reported that a U.S. Department of Justice-led panel, named Team Telecom, was investigating the proposed merger’s potential national security risks. Zoom’s latest fiscal year (FY) was FY 2021, which ended Jan. 31, 2021.

Should investors buy Zoom stock?

Zoom Video Communications, Inc. provides unified communications platform in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. The company was formerly known as Zoom a man for all markets Communications, Inc. and changed its name to Zoom Video Communications, Inc. in May 2012. The company was incorporated in 2011 and is headquartered in San Jose, California. Zoom Video Communications, Inc provides unified communications platform in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well.

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2. They include legacy web-based meeting service providers such as Cisco Systems Inc.’s (CSCO) WebEx and LogMeIn Inc.’s GoToMeeting.
3. © 2024 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions.
4. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
5. The company topped consensus revenue estimates each time over this period.

That was not enough to persuade investors to buy Zoom stock, as it is up just 1% from year-ago levels. Admittedly, the company’s results have come nowhere close to matching that expected growth. In the first nine months of 2023, revenue of $3.4 billion increased by only 3% yearly.

Analysts estimate that Zoom Video Comms will report an earnings per share (EPS) of $1.31. Zoom Video Communications’ top institutional shareholders include FMR LLC (4.04%), State Street Corp (1.98%), Pacer Advisors Inc. (1.78%) and Geode Capital Management LLC (1.49%). Insiders that own company stock include Santiago Subotovsky, Kelly Steckelberg, Velchamy Sankarlingam, Janet Napolitano, Aparna Bawa, Shane Crehan, Jonathan Chadwick, Ryan Azus and Eric S Yuan. Please bear with us as we address this and restore your personalized lists. 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.