Zoom(US:ZM) ZACKS·2025-12-15 15:16Company Performance - Zoom Communications (ZM) has seen a stock increase of 6.3% over the past month, reaching a new 52-week high of $91.43 [1] - Year-to-date, Zoom's stock has gained 9.7%, compared to a 25.5% gain for the Zacks Computer and Technology sector and a 7.5% return for the Zacks Internet - Software industry [1] Earnings and Revenue - Zoom has a strong record of positive earnings surprises, not missing earnings consensus estimates in the last four quarters. In the latest earnings report on November 24, 2025, Zoom reported EPS of $1.52 against a consensus estimate of $1.43 [2] - For the current fiscal year, Zoom is expected to post earnings of $5.94 per share on revenues of $4.85 billion, reflecting a 7.22% change in EPS and a 3.92% change in revenues. For the next fiscal year, earnings are projected at $5.93 per share on revenues of $5 billion, indicating a year-over-year change of -0.2% in EPS and 3.21% in revenues [3] Valuation Metrics - Zoom's current valuation metrics show a trading multiple of 15.1X current fiscal year EPS estimates, below the peer industry average of 29.2X. On a trailing cash flow basis, it trades at 20.8X compared to the peer group's average of 23.9X. The stock has a PEG ratio of 5.25, which does not place it among the top echelon of stocks from a value perspective [7] Zacks Rank and Style Scores - Zoom holds a Zacks Rank of 2 (Buy) due to a solid earnings estimate revision trend, meeting the criteria for investors looking for stocks with a Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B [8] - The company has a Value Score of C, a Growth Score of B, and a Momentum Score of C, resulting in a combined VGM Score of B [6] Industry Comparison - The Internet - Software industry is positioned in the top 23% of all industries, indicating favorable conditions for both Zoom and its peer, 8x8 Inc (EGHT), which also has a Zacks Rank of 2 (Buy) [11]