Market Analysts see Zoom Communications Inc [ZM] gaining to $85. Time to buy?

Edison Baldwin

Zoom Communications Inc [NASDAQ: ZM] plunged by -$0.03 during the normal trading session on Monday and reaching a high of $80.27 during the day while it closed the day at $78.6.

Zoom Communications Inc stock has also loss -3.98% of its value over the past 7 days. However, ZM stock has declined by -0.27% in the 3 months of the year. Over the past six months meanwhile, it has lost -0.38% and lost -0.33% year-on date.

The market cap for ZM stock reached $23.52 billion, with 267.28 million shares outstanding and 265.83 million shares in the current float. Compared to the average trading volume of 3.01M shares, ZM reached a trading volume of 9797992 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here’s what leading stock market gurus have to say about Zoom Communications Inc [ZM]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for ZM shares is $93.56 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on ZM stock is a recommendation set at 2.26. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Morgan Stanley have made an estimate for Zoom Communications Inc shares, keeping their opinion on the stock as Equal-Weight, with their previous recommendation back on October 21, 2025. While these analysts kept the previous recommendation, UBS raised their target price to Neutral. The new note on the price target was released on October 20, 2025, representing the official price target for Zoom Communications Inc stock.

The Price to Book ratio for the last quarter was 2.64, with the Price to Cash per share for the same quarter was set at 26.02. Price to Free Cash Flow for ZM in the course of the last twelve months was 12.75 with Quick ratio for the last quarter at 4.36.

ZM stock trade performance evaluation

Zoom Communications Inc [ZM] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -3.98. With this latest performance, ZM shares dropped by -6.74% in over the last four-week period, additionally sinking by -0.38% over the last 6 months – not to mention a drop of -3.69% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for ZM stock in for the last two-week period is set at 36.75, with the RSI for the last a single of trading hit 2.18, and the three-weeks RSI is set at 2.15 for Zoom Communications Inc [ZM]. The present Moving Average for the last 50 days of trading for this stock 82.59, while it was recorded at 79.53 for the last single week of trading, and 78.54 for the last 200 days.

Zoom Communications Inc [ZM]: An insightful look at the core fundamentals

Operating Margin for any stock indicates how profitable investing would be, and Zoom Communications Inc [ZM] shares currently have an operating margin of 20.43% and a Gross Margin at 76.38%. Zoom Communications Inc’s Net Margin is presently recorded at 24.99%.

Zoom Communications Inc (ZM) Capital Structure & Debt Analysis

According to recent financial data for Zoom Communications Inc. ( ZM), the Return on Equity (ROE) stands at 13.60%, reflecting robust shareholder value creation. The Return on Assets (ROA) is 11.03%, reflecting the company’s efficiency in generating profits from its assets. Additionally, Zoom Communications Inc’s Return on Invested Capital (ROIC) is 13.23%, showcasing its effectiveness in deploying capital for earnings.

Zoom Communications Inc (ZM) Efficiency & Liquidity Metrics

Based on Zoom Communications Inc’s (ZM) latest financial statements, the Debt-to-Equity Ratio is 0.01%, indicating its reliance on debt financing relative to shareholder equity.

Zoom Communications Inc (ZM) Efficiency & Liquidity Metrics

From an operational efficiency perspective, Zoom Communications Inc. (ZM) effectively leverages its workforce, generating an average of $160550.46 per employee. The company’s liquidity position is robust, with a Current Ratio of 4.36% and a Quick Ratio of 4.36%, indicating strong ability to cover short-term liabilities.

Earnings per share (EPS) analysis for Zoom Communications Inc [ZM] stock

With the latest financial reports released by the company, Zoom Communications Inc posted 1.41/share EPS, while the average EPS was predicted by analysts to be reported at 1.35/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 0.06. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for ZM. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Zoom Communications Inc go to 4.38%.

Zoom Communications Inc [ZM]: Institutional Ownership

There are presently around $76.73%, or 76.93%% of ZM stock, in the hands of institutional investors. The top three institutional holders of ZM stocks are: VANGUARD GROUP INC with ownership of 23.78 million shares, which is approximately 7.6931%. BLACKROCK INC., holding 15.53 million shares of the stock with an approximate value of $$919.33 million in ZM stocks shares; and BLACKROCK INC., currently with $$594.83 million in ZM stock with ownership which is approximately 3.2508%.

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