Zoom(US:ZM) ZACKS·2026-02-17 23:51Core Viewpoint - Zoom Communications is experiencing fluctuations in stock performance, with a recent decline of 4.4% while showing a significant monthly gain of 14.38% compared to broader market indices [1] Financial Performance Expectations - The upcoming earnings report on February 25, 2026, is anticipated to show earnings of $1.48 per share, reflecting a year-over-year growth of 4.96% and revenue of $1.23 billion, indicating a 4.08% increase from the same quarter last year [2] - For the full year, analysts expect earnings of $5.96 per share and revenue of $4.85 billion, representing increases of 7.58% and 4% respectively from the previous year [3] Analyst Sentiment - Recent changes in analyst estimates suggest a favorable outlook on Zoom Communications' business health and profitability, indicating positive near-term trends [4] - The Zacks Rank system currently rates Zoom Communications at 3 (Hold), with a stagnant consensus EPS projection over the past 30 days [6] Valuation Metrics - Zoom Communications has a Forward P/E ratio of 15.6, which is lower than the industry average of 19.23, indicating it is trading at a discount [7] - The company has a PEG ratio of 5.43, significantly higher than the industry average of 1.14, suggesting that its projected earnings growth is not being reflected in its current valuation [8] Industry Context - The Internet - Software industry, to which Zoom belongs, ranks in the top 36% of all industries according to the Zacks Industry Rank, indicating a relatively strong position within the market [8]