What Analysts Are Saying About Zoom Communications Stock

During the last three months, 6 analysts shared their evaluations of Zoom Communications ZM, revealing diverse outlooks from bullish to bearish.

In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.

The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $87.83, a high estimate of $110.00, and a low estimate of $69.00. A decline of 3.06% from the prior average price target is evident in the current average.

Investigating Analyst Ratings: An Elaborate Study

A clear picture of Zoom Communications's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Zoom Communications. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Zoom Communications compared to the broader market.
• Price Targets: Understanding forecasts, analysts offer estimates for Zoom Communications's future value. Examining the current and prior targets provides insight into analysts' changing expectations.

Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Zoom Communications's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.

Stay up to date on Zoom Communications analyst ratings.

Delving into Zoom Communications's Background

Zoom Video Communications provides a communications platform that connects people through video, voice, chat, and content sharing. The company's cloud-native platform enables face-to-face video and connects users across various devices and locations in a single meeting. Zoom, which was founded in 2011 and is headquartered in San Jose, California, serves companies of all sizes from all industries around the world.

Unraveling the Financial Story of Zoom Communications

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

Revenue Growth: Over the 3M period, Zoom Communications showcased positive performance, achieving a revenue growth rate of 2.93% as of 30 April, 2025. This reflects a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Information Technology sector.

Net Margin: Zoom Communications's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of 21.67%, the company may encounter challenges in effective cost control.

Return on Equity (ROE): Zoom Communications's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 2.85%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 2.32%, the company showcases effective utilization of assets.

Debt Management: With a below-average debt-to-equity ratio of 0.01, Zoom Communications adopts a prudent financial strategy, indicating a balanced approach to debt management.

What Are Analyst Ratings?

Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

Which Stocks Are Analysts Recommending Now?

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This article was generated by Benzinga's automated content engine and reviewed by an editor.