Is Most-Watched Stock Zoom Communications, Inc. (ZM) Worth Betting on Now?

Core Viewpoint - Zoom Communications has experienced a stock return of -6.9% over the past month, underperforming the Zacks S&P 500 composite's +1% change and the Zacks Internet - Software industry's -4.4% change, raising questions about its near-term stock performance [1] Earnings Estimate Revisions - The consensus earnings estimate for the current quarter is $1.43 per share, reflecting a +3.6% change year-over-year, with a +1.7% increase in the estimate over the last 30 days [4] - For the current fiscal year, the consensus earnings estimate is $5.83, indicating a +5.2% change from the prior year, with a +1.2% increase in the estimate over the last 30 days [4] - The next fiscal year's consensus earnings estimate remains at $5.83, showing a -0.1% change from the previous year, with a -1.1% decrease in the estimate over the past month [5] Revenue Growth Projections - The consensus sales estimate for the current quarter is $1.21 billion, indicating a +3% year-over-year change, while estimates for the current and next fiscal years are $4.82 billion and $4.97 billion, reflecting changes of +3.4% and +3%, respectively [10] Last Reported Results and Surprise History - In the last reported quarter, Zoom generated revenues of $1.22 billion, a +4.7% year-over-year change, with an EPS of $1.53 compared to $1.39 a year ago [11] - The company exceeded the Zacks Consensus Estimate for revenues by +1.66% and for EPS by +11.68% [11] - Zoom has consistently beaten consensus EPS and revenue estimates in the last four quarters [12] Valuation - Zoom holds a Zacks Value Style Score of C, indicating it is trading at par with its peers, which suggests a balanced valuation relative to its competitors [16] Bottom Line - The Zacks Rank 1 (Strong Buy) for Zoom suggests potential outperformance compared to the broader market in the near term [17]