Zoom(US:ZM) ZACKS·2026-01-23 23:45Core Viewpoint - Zoom Communications is experiencing fluctuations in stock performance, with a recent closing price of $85.78, reflecting a 1.33% increase, which is higher than the S&P 500's daily gain of 0.03% [1] Company Performance - The company is expected to report an EPS of $1.48, indicating a 4.96% increase from the same quarter last year, with projected net sales of $1.23 billion, up 4.08% year-over-year [2] - For the annual period, earnings are anticipated to be $5.96 per share and revenue at $4.85 billion, representing increases of 7.58% and 3.99% respectively from the previous year [3] Analyst Sentiment - Recent changes in analyst estimates for Zoom Communications suggest optimism regarding the company's business and profitability, as positive revisions reflect favorable near-term trends [3] - The Zacks Rank system currently rates Zoom Communications as 1 (Strong Buy), indicating strong investor confidence [5] Valuation Metrics - Zoom Communications has a Forward P/E ratio of 14.2, which is lower than the industry average of 23.85, suggesting a valuation discount [6] - The company’s PEG ratio stands at 4.95, compared to the Internet - Software industry average of 1.4, indicating a higher expected earnings growth rate relative to its price [6] Industry Context - The Internet - Software industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 69, placing it in the top 29% of over 250 industries, suggesting strong overall performance [7]