Zoom Communications Inc [ZM] Stock trading around $75.63 per share: What’s Next?

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Zoom Communications Inc [NASDAQ: ZM] stock went on a downward path that fall over -0.55% on Thursday, amounting to a one-week price increase of more than 1.38%.

Over the last 12 months, ZM stock dropped by -7.33%. The one-year Zoom Communications Inc stock forecast points to a potential upside of 16.5. The average equity rating for ZM stock is currently 2.34, trading closer to a bullish pattern in the stock market.

The market cap for the stock reached $22.88 billion, with 261.11 million shares outstanding and 259.62 million shares in the current float. Compared to the average trading volume of 2.79M shares, ZM stock reached a trading volume of 4179752 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Guru’s Opinion on 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 $90.58 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 2.34. 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.

KeyBanc Capital Markets have made an estimate for Zoom Communications Inc shares, keeping their opinion on the stock as Underweight, with their previous recommendation back on June 06, 2025. The new note on the price target was released on May 22, 2025, representing the official price target for Zoom Communications Inc stock. Previously, the target price had yet another raise to $87, while Cantor Fitzgerald analysts kept a Neutral rating on ZM stock. On January 07, 2025, analysts increased their price target for ZM shares from 70 to 85.

The Price to Book ratio for the last quarter was 2.58, with the Price to Cash per share for the same quarter was set at 25.82. Price to Free Cash Flow for ZM in the course of the last twelve months was 13.44 with Quick ratio for the last quarter at 4.48.

ZM Stock Performance Analysis:

Zoom Communications Inc [ZM] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 1.38. With this latest performance, ZM shares dropped by -1.07% in over the last four-week period, additionally sinking by -4.60% over the last 6 months – not to mention a drop of -7.33% 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 45.79, with the RSI for the last a single of trading hit 1.39, and the three-weeks RSI is set at 1.51 for Zoom Communications Inc [ZM]. The present Moving Average for the last 50 days of trading for this stock 78.50, while it was recorded at 75.24 for the last single week of trading, and 78.46 for the last 200 days.

Insight into Zoom Communications Inc Fundamentals:

Operating Margin for any stock indicates how profitable investing would be, and Zoom Communications Inc [ZM] shares currently have an operating margin of 18.13% and a Gross Margin at 75.85%. Zoom Communications Inc’s Net Margin is presently recorded at 22.31%.

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 12.19%, reflecting robust shareholder value creation. The Return on Assets (ROA) is 9.87%, reflecting the company’s efficiency in generating profits from its assets. Additionally, Zoom Communications Inc’s Return on Invested Capital (ROIC) is 11.73%, 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 $141662.17 per employee. The company’s liquidity position is robust, with a Current Ratio of 4.48% and a Quick Ratio of 4.48%, indicating strong ability to cover short-term liabilities.

ZM Stock EPS

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 2.60%.

Zoom Communications Inc [ZM] Institutonal Ownership Details

There are presently around $74.65%, or 74.85% 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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