What 14 Analyst Ratings Have To Say About Zoom Video Comms

Zoom Video Comms ZM underwent analysis by 14 analysts in the last quarter, revealing a spectrum of viewpoints from bullish to bearish.

Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.

The 12-month price targets, analyzed by analysts, offer insights with an average target of $78.79, a high estimate of $95.00, and a low estimate of $66.00. This current average has increased by 2.32% from the previous average price target of $77.00.

Interpreting Analyst Ratings: A Closer Look

A clear picture of Zoom Video Comms'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 respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Zoom Video Comms. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of Zoom Video Comms compared to the broader market.
• Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of Zoom Video Comms's stock. This examination reveals shifts in analysts' expectations over time.

To gain a panoramic view of Zoom Video Comms's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.

Stay up to date on Zoom Video Comms analyst ratings.

Unveiling the Story Behind Zoom Video Comms

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.

Financial Insights: Zoom Video Comms

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Growth: Zoom Video Comms's remarkable performance in 3 months is evident. As of 31 October, 2023, the company achieved an impressive revenue growth rate of 3.16%. This signifies a substantial increase in the company's top-line earnings. When compared to others in the Information Technology sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: Zoom Video Comms's net margin excels beyond industry benchmarks, reaching 12.42%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): Zoom Video Comms's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of 1.96%, the company may face hurdles in achieving optimal financial returns.

Return on Assets (ROA): Zoom Video Comms's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 1.55% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: Zoom Video Comms's debt-to-equity ratio is below the industry average. With a ratio of 0.01, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Understanding the Relevance of Analyst Ratings

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.

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