In the latest close session, Zoom Communications (ZM) was up +2.64% at $107.47. This move outpaced the S&P 500’s daily gain of 0.21%. Elsewhere, the Dow saw an upswing of 0.22%, while the tech-heavy Nasdaq appreciated by 0.16%.
Shares of the video-conferencing company have appreciated by 16.64% over the course of the past month, outperforming the Computer and Technology sector’s gain of 3.8%, and the S&P 500’s gain of 3.25%.
The upcoming earnings release of Zoom Communications will be of great interest to investors. The company’s earnings report is expected on August 25, 2026. The company’s upcoming EPS is projected at $1.5, signifying a 1.96% drop compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $1.27 billion, showing a 4.22% escalation compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $6.17 per share and a revenue of $5.09 billion, indicating changes of +4.22% and +4.54%, respectively, from the former year.
Investors should also note any recent changes to analyst estimates for Zoom Communications. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts’ confidence in the business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Zoom Communications is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Zoom Communications is holding a Forward P/E ratio of 16.96. This signifies a discount in comparison to the average Forward P/E of 21.39 for its industry.
It is also worth noting that ZM currently has a PEG ratio of 3.82. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company’s anticipated earnings growth rate. As of the close of trade yesterday, the Internet – Software industry held an average PEG ratio of 0.97.
The Internet – Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 87, finds itself in the top 36% echelons of all 250+ industries.
