As Wood and others have stated, Zoom is much more than an online meeting platform. It is a comprehensive communications ecosystem that includes team chat platforms, online whiteboards, VoIP phone service, workspaces, email, and other services. Coming into today, shares of the video-conferencing company had gained 9.37% in the past month. In that best mt4 white label brokers and providers 2023 same time, the Computer and Technology sector gained 0.18%, while the S&P 500 gained 0.62%.
Zoom Video Communications (ZM) Earnings Expected to Grow: Should You Buy?
The significant climb in free cash flow was a result of superb revenue growth stemming from pandemic-driven demand. Zoom’s financials remain strong, but I think the company needs to improve future growth prospects to justify trading at current valuation multiples. With revenue and earnings growth expected to pull back in the years ahead, I wouldn’t be surprised to see growth-oriented investors exit their positions in Zoom stock.
In predicting a stock’s future price performance, it’s crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company’s growth prospects. Its forward price-to-earnings (P/E) ratio is just under 14, and the price-to-sales (P/S) ratio of less than 5 is just above all-time lows. That valuation positions the stock for a massive surge if the company can stoke a recovery in revenue growth. The investment community will be closely monitoring the performance of Zoom Video Communications in its forthcoming earnings report. The company is scheduled to release its earnings on November 25, 2024. The company is forecasted to report an EPS of $1.31, showcasing a 1.55% upward movement from the corresponding quarter of the prior year.
year stock price forecast
- As a long-term investor, I don’t ignore past performance, but I’m generally more interested in where the company is heading.
- The platform connects people via video, phone, chat, and content sharing and can be integrated across a broad range of devices.
- With 2026 just two years away, Ark Invest’s base case estimates are looking increasingly unlikely to come to pass, and it may even fall short of the $700-per-share bear case estimate.
- Zoom is a member of the information technology sector and operates within the software industry.
- Instead it’s the creation of a different, unnamed “partner” that he said is working with the ai16z team.
Rivals also include bundled productivity solution providers with video functionality such as Alphabet Inc.’s (GOOGL) Google windsor brokers broker review G Suite and Microsoft Inc.’s (MSFT) Microsoft Teams. Other competitors are unified communications as a service (UCaaS) and legacy private bank exchange (PBX) providers such as 8×8 Inc. (EGHT), Avaya Holdings Corp. (AVYA), and RingCentral Inc. (RNG). Without considering a stock’s valuation, no investment decision can be efficient.
To that end, Zoom has recently introduced Zoom Phone, Zoom Meetings, Zoom Video Webinars, and Zoom for Home. All successful companies find ways to keep expanding their business in order to create new revenue streams and remain relevant in an ever-changing world. In order to do this, businesses need the cash to invest in research and development and capital improvements. Zoom has the balance sheet to do this and has been very active in rolling out new products. By taking out of the equation the volatility of the past two years and viewing Zoom’s performance on this two-year basis, we see just how remarkable the growth of its business is.
How many shares of Zoom (ZM) stock are there?
In the case of Zoom Video, the consensus sales estimate of $1.16 billion for the current quarter points to a year-over-year change of +2.3%. The $4.64 billion and $4.76 billion estimates for the current and next fiscal years indicate changes of +2.4% and +2.7%, respectively. While earnings growth is arguably the most superior indicator of a company’s financial health, nothing happens as such if a business isn’t able to grow its revenues. After all, it’s nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. For the next fiscal year, the consensus earnings estimate of $5.24 indicates a change of -1.8% from what Zoom Video is expected to report a year ago. Zoom’s valuation has surely contracted, but it’s still not desirable when observing the company’s peer group.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Right now, Zoom Video Communications possesses a Zacks Rank of #2 (Buy).
Lifeward (LFWD) Reports Q3 Loss, Lags Revenue Estimates
Alongside, our convert united states dollars most recent consensus estimate is anticipating revenue of $1.16 billion, indicating a 2.34% upward movement from the same quarter last year. As a long-term investor, I don’t ignore past performance, but I’m generally more interested in where the company is heading. Zoom has provided investors with spectacular growth and returns in the past couple of years; however, I don’t see that continuing into the future. The pullback in pandemic-driven demand, in addition to increased competition from massive tech companies like Microsoft and Alphabet, will challenge Zoom’s business moving from here on out.
