Latest news with #ZM
Yahoo
a day ago
- Business
- Yahoo
Zoom Rises 8% in 3 Months: Here's Why You Should Buy the Stock Now
Zoom Communications, Inc. ZM shares have gained 7.6% in the trailing three months, outperforming the Zacks Computer and Technology sector and the S&P 500 index's return of 4.8% and 0.9%, respectively. The stock has also outperformed the Zacks Internet – Software industry's growth of 1.1% in the same time outperformance can be attributed to the company's accelerating AI-driven innovation, which is reshaping productivity workflows across enterprises. From the rapid adoption of Zoom AI Companion to multi-product deals with Global 2000 firms, Zoom's platform expansion and improved churn rates have reaffirmed investor confidence in its near-term growth trajectory. The share price rise does not tell the whole story. Let's delve deeper into two factors driving ZM's growth to understand why the stock is a buy now. Zoom faces competition from legacy platforms like Cisco Systems' CSCO Webex and bundled productivity suites, such as Microsoft's MSFT Teams and Alphabet's GOOGL Google Workspace. While Cisco Systems' Webex and Microsoft Teams offer video meetings, messaging and file sharing, Alphabet's Google Workspace integrates Meet with email, calendar, chat, and collaboration tools in a unified platform. Zoom Communications, Inc. price-consensus-chart | Zoom Communications, Inc. Quote To differentiate itself, Zoom is doubling down on AI innovation to enhance productivity and customer value. One of its key growth drivers in the fiscal first quarter was its expanding portfolio of AI-powered tools. Adoption of Zoom AI Companion grew nearly 40% quarter over quarter, with usage expanding beyond meeting summaries to include answering questions, scheduling, content creation and more. Raymond James, a U.S.-based financial services firm, recently announced that it is rolling out AI Companion meeting summaries firm-wide, highlighting the product's enterprise also began monetizing its AI offerings through Custom AI Companion, launched in the fiscal first quarter. Early feedback from Global 2000 trial customers has been positive, with particular interest in features like 'Bring Your Own Dictionary,' meeting summary templates, and Jira integration. Zoom's enterprise segment showed solid momentum in the fiscal first quarter, with enterprise revenues growing approximately 6% year over year and accounting for 60% of total revenues, up two percentage points from the prior year. The number of customers contributing more than $100,000 in trailing 12-month revenues rose 8% year over year, representing 32% of total revenues in the fiscal first wins underscore this momentum. The Boston Celtics upgraded to Zoom Workplace Enterprise Plus and adopted Zoom Phone and Workvivo. A leading financial institution signed a deal exceeding $1 million in ARR, consolidating its tech stack by replacing Microsoft Teams and other tools with Zoom's AI-first platform. For the second quarter of fiscal 2026, Zoom expects total revenues between $1.195 billion and $1.2 billion. Revenues in constant currency are expected to be between $1.196 billion and $1.201 billion. Non-GAAP diluted earnings per share are anticipated to be between $1.36 and $1.37. The Zacks Consensus Estimate for fiscal second-quarter revenues is pegged at $1.2 billion, indicating year-over-year growth of 2.96%. The consensus mark for earnings is pegged at $1.37 per share, suggesting a year-over-year decline of 1.44%.ZM beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, with the average surprise being 9.46%. Zoom has strengthened itself in a competitive market as an AI-first platform. Additionally, its solid momentum across the enterprise segment in the first quarter of fiscal 2026, driven by continuous platform expansion, signals strong upside potential. ZM currently carries a Zacks Rank #2 (Buy), suggesting a compelling entry point in the stock for investors now. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Microsoft Corporation (MSFT) : Free Stock Analysis Report Cisco Systems, Inc. (CSCO) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Zoom Communications, Inc. (ZM) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Entrepreneur
2 days ago
- Business
- Entrepreneur
Top 2 Stock Upgrades You Should Know
These stocks just got a glow-up… Here's a detailed report on 2 stocks that recently got upgrades from our quant ratings system. This story originally appeared on WallStreetZen If the stock market does one thing, it changes. And any system worth its computing power knows this and regularly tracks companies that are improving their performance. Our Zen Ratings system does just this, tracking 115 factors and assigning ratings and component grades to each stock we cover, with the top 5% of stocks receiving an A Zen Rating. Stocks with an A Zen Rating have an average annualized return of +32.52%. And that deserves some attention. There are plenty of stocks that rise to the top each week, but here we want to point out two in particular: Zoom Communications (NASDAQ: ZM) The age of everyone being on Zoom meetings and calls is several years over now, but that doesn't mean Zoom meetings are gone. People still use it every day for webinars, meetings, working from home, and more. And Zoom has handled the transition out of the absolute spotlight well, considering its Financials rating of A, which indicates that ZM has strong financial foundations and can safely manage its debts and liabilities. Its earnings estimates have also trended upward recently, rising from $1.35 EPS a year ago to $1.43 last quarter. The pharmaceutical giant has been the subject of considerable discussion recently, with some calling it an underdog to watch, while others warn of overhype. For our two cents, our Zen Ratings system gives it an A rating. This is largely due to the recent correction it received from the market, with about a 20% downturn over the last six months. This has brought it back into the realm of good value for many investors, and value investors will want to take a closer look at BMY. And this is all despite fears of President Trump announcing he plans to reduce U.S. drug prices. Interestingly, investors don't seem to be reacting with panic to the news. The other potential half of the equation for BMY is the annual dividend yield of 5.32%. Just note that this shouldn't be the only factor for you. If you want to learn more about this subject, we have an excellent piece on dividend stocks here, written by Steve Reitmeister. Want to easily find other top-rated stocks, both new and old? You've come to the right place. With WallStreetZen Premium, you'll also receive access to an ideas page that tells you about upgrades and downgrades of key stocks. You'll also receive an unlimited watchlist and all the fundamental information you need to make the best decisions for your portfolio. And you can keep track of interesting stocks yourself, but that's not always practical when there are thousands of them. If you're worried about this, Zen Investor is what you need. With it, you'll get selections and recommendations from our own Steve Reitmeister, who has more than 40 years of experience investing in and watching the market. You'll also have access to regular updates and commentary that will provide context for why stocks are selected. What to Do Next?
NZ Herald
6 days ago
- Entertainment
- NZ Herald
Dr Bonnie Robinson talks about benefit sanctions
Baby from viral 'Charlie Bit My Finger' video catches up with ZM's Fletch, Vaughan and Hayley Charlie Davies-Carr is now 19 years old and studies law at university. Video / ZM
Yahoo
24-05-2025
- Business
- Yahoo
Piper Sandler Lifts Zoom (ZM) Target, Keeps Neutral Rating
On Thursday, May 22, Piper Sandler raised its price target for Zoom Communications Inc. (NASDAQ:ZM) from $77 to $85 but maintained a Neutral rating. This decision came after the company's recent quarterly results, which were considered relatively normal. Piper Sandler's analyst highlighted that Zoom Communications Inc.'s (NASDAQ:ZM) newer products like CX, Phone, ZVA, Workvivo, and AI Companion are becoming popular among existing customers. These products are also helping in longer deal durations and impacting the company's direct growth positively. A close-up of a hand using a laptop to control an immersive video meeting. Piper Sandler suggested that the company's guidance is conservative. However, the firm found reasons for encouragement and noted the price increase for Online Pro, growth in CX, adoption of the CX Elite package, faster growth of Workvivo, and the performance of the Phone product as positive signs. According to the analyst, while Zoom Communications Inc.'s (NASDAQ:ZM) core offerings are showing signs of stabilization, the company needs a catalyst to boost its growth trajectory. While we acknowledge the potential of ZM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ZM and that has a 100x upside potential, check out our report about the cheapest AI stock. READ NEXT: 11 Stocks That Will Bounce Back According To Analysts and 11 Best Stocks Under $15 to Buy According to Hedge Funds. Disclosure: None.
Yahoo
24-05-2025
- Business
- Yahoo
Benchmark Raises Zoom Communications (ZM) Price Target to $102 After Q1 Report
On May 22, Benchmark analyst Matthew Harrigan reiterated his Buy rating for Zoom Communications Inc. (NASDAQ:ZM) and raised his price target for the company's shares from $97 to $102. The change follows Zoom increasing its constant currency revenue forecast for the full year by $15 million and marginally exceeding its first-quarter fiscal year 2026 guidance. Photo by Chris Montgomery on Unsplash Although Zoom Communications Inc. (NASDAQ:ZM) acknowledged a slight decline in the previous forecast for Enterprise sales, its performance shows a modest upward revision in estimates, with revenue exceeding expectations by $8 million while also considering a $10–15 million benefit from higher rates for monthly Pro customers. The updated guidance also takes into account Zoom's flexibility in modifying its pricing strategy to increase the profitability of its Online segment. Zoom CEO Eric Yuan also used a very lifelike avatar in his opening remarks during the earnings call to highlight the company's dedication to security and privacy. According to Benchmark, Zoom's tech capabilities will eventually advance to the point where the CEO's avatar is almost identical to the real Eric Yuan in less than a year, highlighting the necessity of customer-specific approval levels for AI integration. While we acknowledge the potential of ZM to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ZM and that has 100x upside potential, check out our report about the cheapest AI stock. Read Next: and Disclosure: None. Sign in to access your portfolio
