Zoom Communications (ZM) Sees a More Significant Dip Than Broader Market: Some Facts to Know Zacks Equity Research Fri, October 16, 2026 at 4:45 PM EDT 3 min read ZM -4.39% ^GSPC -1.09% ^DJI -0.34% ^IXIC -2.14% Trade ZM on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
Zoom Communications (ZM) ended the recent trading session at $94.19, demonstrating a -4.39% change from the preceding day's closing price. The stock fell short of the S&P 500, which registered a loss of 1.09% for the day. At the same time, the Dow lost 0.34%, and the tech-heavy Nasdaq lost 2.15%.
Shares of the video-conferencing company witnessed a gain of 6.89% over the previous month, beating the performance of the Computer and Technology sector with its gain of 1.99%, and the S&P 500's gain of 2.44%.
Market participants will be closely following the financial results of Zoom Communications in its upcoming release. It is anticipated that the company will report an EPS of $1.5, marking a 1.32% fall compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.28 billion, indicating a 3.98% increase compared to the same quarter of the previous year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $6.24 per share and a revenue of $5.09 billion, indicating changes of +5.41% and +4.58%, respectively, from the former year.
Investors might also notice recent changes to analyst estimates for Zoom Communications. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Zoom Communications is currently sporting a Zacks Rank of #3 (Hold).
In the context of valuation, Zoom Communications is at present trading with a Forward P/E ratio of 15.8. For comparison, its industry has an average Forward P/E of 21.23, which means Zoom Communications is trading at a discount to the group.
It's also important to note that ZM currently trades at a PEG ratio of 3.11. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ZM's industry had an average PEG ratio of 1.25 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 81, this industry ranks in the top 33% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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Zoom Communications, Inc. (ZM) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
