While Zoom Video Communications currently has a Hold rating among analysts, top-rated analysts believe these five stocks are better buys. Past performance is not a guarantee or prediction of future performance. Research and a sense of your overall portfolio can help you decide how much money to invest in Zoom. So, too, might your opinion on how long people will continue to work and dial in from home.

Unlike some other firms, Zoom went into its IPO as a Accumulation distribution indicator profitable company. Zoom’s cloud-based service allows people in different locations with different devices to connect face-to-face and share content via video, voice and chat. This may influence which products we review and write about (and where those products appear on the site), but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. Our partners cannot pay us to guarantee favorable reviews of their products or services.

Consensus Rating

• Once you’re ready to buy shares of Zoom stock, pull up your brokerage account and search for the ticker ZM.
• You’ll need to add money to the account and then search for “ZM” within the brokerage’s platform.
• Geode Capital Management LLC now owns 4,595,435 shares of the company’s stock valued at $320,177,000 after acquiring an additional 184,518 shares during the last quarter.
• Sign-up to receive the latest news and ratings for Zoom Video Communications and its competitors with MarketBeat’s FREE daily newsletter.

These are a treasure trove of information about the company’s operations, financials, customers, case studies, leadership team, challenges and growth opportunities. In other words, all the things that can help investors determine if Zoom is a worthy addition to their portfolio. Founded in 1993, The Motley Fool is a financial services company dedicated to making the world smarter, happier, and richer. The Motley Fool reaches millions of people every month through our premium investing alpari review solutions, free guidance and market analysis on Fool.com, personal finance education, top-rated podcasts, and non-profit The Motley Fool Foundation.

This acquisition also saw Yuan promoted to Cisco’s corporate video president of engineering for collaboration software. Content on eToro’s social trading platform is generated by members of its community and does not contain advice or recommendations by or on behalf of eToro – Your Social Investment Network. Zoom reported revenues of $1.18 billion in the last reported quarter, representing a year-over-year change of +3.3%. EPS of $1.41 for the same period compares with $1.42 a year ago. Zoom is expected to post earnings of $1.30 per share for the current quarter, representing a year-over-year change of -3.7%. Over the last 30 days, the Zacks Consensus Estimate has changed +2.4%.

• Salesforce.com invested heavily during Zoom’s IPO but later sold all its shares and reaped massive gains.
• We update our data regularly, but information can change between updates.
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• Experts generally recommend holding a mix of investments in specific assets and funds.

For valuing companies that are loss-making or have lots of physical asset

One of the factors that a trader should check when selecting a company for investment is profitably, and Zoom has done excellently. However, you need also to establish whether the momentum can be sustained in the coming years. Zoom is a cloud-based conferencing software that enables people to interact virtually when a physical meeting is undesirable or impossible. Indeed, it is more than a video software because users can record meetings, create annotations, and even share each other’s screenshots. This flexibility and convenience made it the software of choice for most companies and individuals who were forced to work remotely at the height of the COVID-19 emergency. Zoom’s revenue decelerated as a public company in its first four quarters, but everything changed from April 2020 when the COVID-19 pandemic hit the globe.

Bank of America boosted their price objective on shares of Zoom Video Communications from $75.00 to $90.00 and gave the stock a “neutral” rating in a research report on Tuesday, November 26th. Benchmark boosted their price objective on shares of Zoom Video Communications from $85.00 to $97.00 and gave the stock a “buy” rating in a research report on Tuesday, November 26th. Finally, Citigroup dropped their price objective on shares of Zoom Video Communications from $86.00 to $85.00 and set a “neutral” rating for the company in a research report on Tuesday. Sixteen analysts have rated the stock with a hold rating, eight have assigned a buy rating and one has assigned a strong buy rating to the stock.

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To succeed in Zoom trading, it is prudent to follow its performance and the latest analysis by experts closely. Because of the anticipated high volatility, make sure to manage your risk well by only trading with a small portion of your equity in every trade and using stop-loss orders correctly. A good broker should also have low transaction fees so that you can keep your costs low. The broker should also have an all-around trading ZM stock analysis to help you make the right decision. By 2019, about half of Fortune 500 companies reportedly used Zoom. This is why it was easy for it to win more brands and individual users when COVID-19 broke out and forced more people to work remotely.

The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Zoom’s future profitability. By accounting for growth, it could also help you if you’re comparing the share prices of multiple high-growth companies. That’s relatively high compared to, say, the trailing 12-month P/E ratio for the United States stock markets on average as of November 09, 2023 (20.44). The high P/E ratio could mean that investors are optimistic about the outlook for the shares or simply that they’re over-valued. Listed on Nasdaq just six months before covid-19 hit, the stock soared as every household download the Zoom software. Replicate this sort of growth in other countries – and suddenly investors woke up to the power of the communication company.

Should You Invest $1,000 in Zoom Video Communications Right Now?

Please appreciate that there may be other options available to you than the products, providers or services covered by our service. Zoom’s current share price divided by its per-share earnings (EPS) over a 12-month period gives a “trailing best forex trading app price/earnings ratio” of roughly 23x. In other words, Zoom’s shares trade at around 23x recent earnings. The value of your investments can go up and down, and you may get back less than you invest. If you’re not sure which investments are right for you, please seek out a financial adviser.

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Understanding the business, how it generates revenue and profits, where its prospects and risks lie, and its long-term growth runway are vital aspects of the research process. Diversifying your investment portfolio is a key aspect of benefiting from numerous sources of growth through the years. Investing in 25 to 30 stocks across various industries and sectors is ultimately a great goal to have for your portfolio.

While compensation arrangements may affect the order, position or placement of product information, it doesn’t influence our assessment of those products. Please don’t interpret the order in which products appear on our Site as any endorsement or recommendation from us. Finder compares a wide range of products, providers and services but we don’t provide information on all available products, providers or services.

You’ll need to add money to the account and then search for “ZM” within the brokerage’s platform. Once you’re ready to buy shares of Zoom stock, pull up your brokerage account and search for the ticker ZM. Most brokerages will let you input the exact number of shares you want into the order box or the dollar amount you want to buy. You can usually buy fractional shares, too, if you don’t want to invest in whole shares of the stock.

Based on data from MarketBeat.com, Zoom Video Communications currently has a consensus rating of “Hold” and a consensus price target of $89.48. NerdWallet, Inc. is an independent publisher and comparison service, not an investment advisor. Its articles, interactive tools and other content are provided to you for free, as self-help tools and for informational purposes only. NerdWallet does not and cannot guarantee the accuracy or applicability of any information in regard to your individual circumstances. Examples are hypothetical, and we encourage you to seek personalized advice from qualified professionals regarding specific investment issues. Our estimates are based on past market performance, and past performance is not a guarantee of future performance.

Also, Zoom offers three more paid packages that range from £11.99 – £15.99 per month per host. You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.