Shares of Zoom popped 11% on Monday after analysts at Baird estimated that the company's investment in artificial intelligence startup Anthropic could be worth between $2 billion to $4 billion, depending on dilution assumptions. In May 2023, Anthropic announced a partnership with Zoom and revealed that Zoom Ventures had invested in the company. The companies did not disclose the value of the investment, but Zoom reported making $51 million in "strategic investments" that quarter, according to a filing with ...

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]

Core Viewpoint - Growth investors are increasingly focused on identifying stocks with above-average financial growth, which can lead to significant returns, but this task is challenging due to inherent risks and volatility associated with such stocks [1] Group 1: Growth Stock Identification - The Zacks Growth Style Score system aids in identifying promising growth stocks by analyzing real growth prospects beyond traditional metrics [2] - Zoom Communications (ZM) is currently highlighted as a recommended stock due to its favorable Growth Score and top Zacks Rank [2] Group 2: Earnings Growth - Earnings growth is crucial for growth investors, with double-digit growth being highly desirable as it indicates strong future prospects [4] - Zoom's projected EPS growth for this year is 106.4%, significantly surpassing the industry average of 101.7% [5] Group 3: Cash Flow Growth - Higher-than-average cash flow growth is essential for growth-oriented companies, allowing them to expand without relying on external funding [6] - Zoom's year-over-year cash flow growth stands at 15.8%, compared to an industry average of -17.3% [6] - The company's annualized cash flow growth rate over the past 3-5 years is 75.5%, well above the industry average of 15.2% [7] Group 4: Earnings Estimate Revisions - Positive trends in earnings estimate revisions correlate strongly with near-term stock price movements, making them a valuable metric for investors [8] - Recent upward revisions in current-year earnings estimates for Zoom have led to a 5.5% increase in the Zacks Consensus Estimate over the past month [9] Group 5: Overall Positioning - Zoom has achieved a Growth Score of B and a Zacks Rank of 2, indicating strong potential for outperformance based on the discussed factors [11]

Core Insights - Identiv, Inc. reported a quarterly loss of $0.15 per share, better than the Zacks Consensus Estimate of a loss of $0.23, and improved from a loss of $0.25 per share a year ago, resulting in an earnings surprise of +34.78% [1] - The company achieved revenues of $5.01 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 0.18%, but down from $6.53 million in the same quarter last year [2] - Identiv has surpassed consensus EPS estimates four times over the last four quarters and topped consensus revenue estimates three times during the same period [2] Earnings Outlook - The sustainability of the stock's price movement will depend on management's commentary during the earnings call and future earnings expectations [3][4] - The current consensus EPS estimate for the upcoming quarter is -$0.21 on revenues of $5.1 million, and for the current fiscal year, it is -$0.95 on revenues of $20.4 million [7] Industry Context - The Computer - Peripheral Equipment industry, to which Identiv belongs, is currently ranked in the top 22% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Identiv's stock performance [5]

Core Viewpoint - Zoom Communications (ZM) shows a significant improvement in earnings outlook, making it an attractive investment option as analysts continue to raise earnings estimates [1][2] Earnings Estimate Revisions - Analysts' optimism regarding Zoom's earnings prospects is leading to higher estimates, which is expected to positively impact the stock price [2] - The current-quarter earnings estimate is $1.42 per share, reflecting a +2.9% change from the previous year, with a 6.52% increase in consensus estimates over the last 30 days due to seven upward revisions [7] - For the full year, the expected earnings are $5.77 per share, indicating a +4.2% year-over-year change, with nine estimates moving higher in the past month and a 9.4% increase in consensus estimates [8][9] Zacks Rank and Performance - Zoom has achieved a Zacks Rank 1 (Strong Buy) due to favorable estimate revisions, which historically correlate with strong stock performance [10] - Stocks with Zacks Rank 1 and 2 have shown significant outperformance compared to the S&P 500 [10] - The stock has gained 14.7% over the past four weeks, driven by solid estimate revisions and positive earnings growth prospects [11]

Core Viewpoint - Zoom Communications (ZM) has received an upgrade to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - Institutional investors utilize earnings estimates to determine the fair value of stocks, leading to buying or selling actions that affect stock prices [4]. Recent Performance and Outlook for Zoom - Zoom's rising earnings estimates indicate an improvement in its underlying business, which is expected to drive the stock price higher [5]. - The Zacks Consensus Estimate for Zoom's earnings per share for the fiscal year ending January 2026 is projected at $5.57, reflecting a year-over-year increase of 0.5% [8]. - Over the past three months, analysts have raised their earnings estimates for Zoom by 8.7% [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [7]. - The upgrade of Zoom to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10].

Core Insights - Zoom Communications (ZM) has shown a modest increase in total revenue for the quarter ending April 2025, amounting to $1.17 billion, which is a 2.9% year-over-year growth [4] International Revenue Breakdown - APAC contributed 12.09% of total revenue, translating to $142 million, which was a slight decline of -0.7% compared to analyst expectations of $143.01 million [5] - EMEA accounted for 15.75% of total revenue, with $185 million, exceeding analyst expectations by +0.23% [6] Future Projections - Analysts project total revenue for the current fiscal quarter to reach $1.2 billion, reflecting a 3% increase from the previous year, with APAC and EMEA expected to contribute 12.3% ($146.93 million) and 15.8% ($189.09 million) respectively [7] - For the full year, total revenue is anticipated to be $4.8 billion, marking a 2.9% increase, with contributions from APAC and EMEA projected at 12.3% ($591.96 million) and 15.9% ($762.16 million) respectively [8] Market Context - The reliance on international markets presents both opportunities and challenges for Zoom, making it essential to monitor international revenue trends for future growth projections [9] - The interconnected global economy necessitates a keen understanding of a company's international market performance to gauge its financial health and growth potential [2][3]