Earnings Estimates Rising for Zoom (ZM): Will It Gain?

Core Insights - Zoom Communications (ZM) shows a significantly improving earnings outlook, making it a solid choice for investors as analysts continue to raise their earnings estimates [1][2] - The upward trend in earnings estimate revisions indicates growing optimism among analysts regarding Zoom's earnings prospects, which is expected to positively impact its stock price [2][3] Current-Quarter Estimate Revisions - For the current quarter, Zoom is expected to earn $1.48 per share, reflecting a +5.0% change from the previous year's reported number [7] - Over the last 30 days, the Zacks Consensus Estimate for Zoom has increased by 8.03%, with six estimates moving higher and no negative revisions [7] Current-Year Estimate Revisions - The expected earnings for the full year are $5.94 per share, representing a +7.2% change from the prior year [8] - The trend for current-year estimate revisions is positive, with eight estimates moving higher and no negative revisions [8] Favorable Zacks Rank - Due to promising estimate revisions, Zoom currently holds a Zacks Rank 2 (Buy), indicating strong potential for outperformance [9] - Research indicates that stocks with Zacks Rank 1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500 [9] Bottom Line - Strong estimate revisions have led to a 5.3% increase in Zoom's stock over the past four weeks, suggesting further upside potential [10] - Investors may consider adding Zoom to their portfolios promptly [10]