Zoom Communications (ZM) Ascends While Market Falls: Some Facts to Note

Group 1: Stock Performance - Zoom Communications (ZM) closed at $73.14, with a +1.78% change from the previous day, outperforming the S&P 500's daily loss of 0.29% [1] - Over the past month, ZM shares have depreciated by 3.67%, underperforming the Computer and Technology sector's gain of 6.11% and the S&P 500's gain of 3.25% [1] Group 2: Upcoming Earnings - Zoom Communications is set to announce its earnings on August 21, 2025, with analysts expecting earnings of $1.37 per share, reflecting a year-over-year decline of 1.44% [2] - The consensus estimate for revenue is $1.2 billion, indicating a 3% increase compared to the same quarter last year [2] Group 3: Full-Year Estimates - The full-year Zacks Consensus Estimates project earnings of $5.58 per share and revenue of $4.8 billion, representing year-over-year changes of +0.72% and +2.98%, respectively [3] Group 4: Analyst Estimates and Stock Performance - Recent adjustments to analyst estimates for Zoom Communications are indicative of changing near-term business trends, with positive revisions signaling analysts' confidence in business performance [4] - Estimate alterations are linked to stock price performance, and investors can utilize the Zacks Rank for actionable insights [5] Group 5: Zacks Rank and Valuation - The Zacks Rank system, ranging from 1 (Strong Buy) to 5 (Strong Sell), has a strong track record, with 1 stocks delivering an average annual return of +25% since 1988; currently, Zoom Communications holds a Zacks Rank of 3 (Hold) [6] - Zoom Communications is trading with a Forward P/E ratio of 12.87, significantly lower than the industry average of 28.79, suggesting it is trading at a discount [7] Group 6: PEG Ratio and Industry Context - The current PEG ratio for Zoom Communications is 10.82, compared to the Internet - Software industry's average PEG ratio of 2.23, indicating a higher valuation relative to projected earnings growth [8] - The Internet - Software industry, part of the Computer and Technology sector, has a Zacks Industry Rank of 69, placing it in the top 28% of over 250 industries [8][9]