Assessing Zoom Video Comms: Insights From 12 Financial Analysts

12 analysts have shared their evaluations of Zoom Video Comms ZM during the recent three months, expressing a mix of bullish and bearish perspectives.

The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 2 2 7 1 0
Last 30D 0 0 1 0 0
1M Ago 1 2 4 1 0
2M Ago 1 0 0 0 0
3M Ago 0 0 2 0 0

In the assessment of 12-month price targets, analysts unveil insights for Zoom Video Comms, presenting an average target of $74.58, a high estimate of $95.00, and a low estimate of $60.00. Highlighting a 4.38% decrease, the current average has fallen from the previous average price target of $78.00.

price target chart

Exploring Analyst Ratings: An In-Depth Overview

The standing of Zoom Video Comms among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
Meta Marshall Morgan Stanley Lowers Equal-Weight $68.00 $72.00
Rishi Jaluria RBC Capital Maintains Outperform $95.00 $95.00
Phil Winslow Wells Fargo Lowers Underweight $60.00 $70.00
Tyler Radke Citigroup Raises Neutral $77.00 $76.00
Parker Lane Stifel Lowers Hold $65.00 $70.00
Catharine Trebnick Rosenblatt Raises Buy $78.00 $75.00
Peter Levine Evercore ISI Group Lowers In-Line $70.00 $72.00
William Power Baird Lowers Outperform $84.00 $90.00
Peter Weed Bernstein Lowers Market Perform $78.00 $82.00
Catharine Trebnick Rosenblatt Announces Buy $75.00 -
Catharine Trebnick Rosenblatt Maintains Neutral $75.00 -
Samad Samana Jefferies Announces Hold $70.00 -

Key Insights:

  • Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Zoom Video Comms. This offers insight into analysts' perspectives on 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 Video Comms compared to the broader market.
  • Price Targets: Analysts predict movements in price targets, offering estimates for Zoom Video Comms's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.

Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of Zoom Video Comms's market position. Stay informed and make well-informed decisions with our Ratings Table.

Stay up to date on Zoom Video Comms analyst ratings.

Get to Know Zoom Video Comms Better

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.

Key Indicators: Zoom Video Comms's Financial Health

Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

Revenue Growth: Over the 3 months period, Zoom Video Comms showcased positive performance, achieving a revenue growth rate of 3.25% as of 30 April, 2024. This reflects a substantial increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Information Technology sector.

Net Margin: Zoom Video Comms's net margin excels beyond industry benchmarks, reaching 18.95%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of 2.65%, the company may need to address challenges in generating satisfactory returns for shareholders.

Return on Assets (ROA): Zoom Video Comms's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 2.14%, the company showcases efficient use of assets and strong financial health.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.01.

Analyst Ratings: What Are They?

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.

Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

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

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