ZM Stock Analysis: Buy, Sell, or Hold?

ZM - Zoom Communications, Inc. Class A Common Stock

SERVICES-COMPUTER PROGRAMMING, DATA PROCESSING, ETC.
$91.27
0.05 (0.05%) ▲
5d: +1.67%
30d: +5.54%
90d: +0.48%
BUY
MODERATE Confidence
Analysis Updated: Jul 28, 2026 12:00 AM ET
Earnings: Aug 20, 2026 22d
Smart Money Accumulation

None View Scanner →

Strength: 4.6/10

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Interactive Price Chart (1 Month)

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💡
Bottom Line:
💡 BUY OPPORTUNITY: ZM shows positive signals but monitor for confirmation. Market pricing in 2.5% annual growth which appears achievable. Moderate conviction.
See Forward Earnings Fair Value & Price Prediction →

Long-Term Wealth Forecast (2031)

Based on Analyst Consensus Growth & Historical Valuation

0% (Stagnation) 50% (Hyper Growth)
EST. PRICE IN 2031
$28.05
Based on -18.3% avg growth
INTRINSIC VALUE TODAY
$17.42
Trading above historical range

How this is calculated: We use a Growth Decay Model: starting with analyst consensus growth (adjusted above) and gradually slowing it down to a long-term terminal rate (4%) by Year 5. This provides a more realistic valuation than assuming constant hyper-growth. We then apply a 23.9x Exit PE.

In-depth Analysis How we analyze

Valuation Analysis: ZM is currently trading at $91.27, which is considered extended relative to its 30-day fair value range of $85.34 to $91.09. The stock's valuation (Forward PE: 25.7) is in line with its historical norms (23.9). At these levels, the market is pricing in 2.5% annual earnings growth. This growth rate appears achievable given the company's track record, suggesting the valuation is rational.

Technical Outlook: Technically, ZM is in a downtrend. Immediate support is located at $83.33, while resistance sits at $94.45.

Market Sentiment: ZM has a strong technical setup (60/100), with favorable trendlines, momentum, and price action for short-term traders. Wall Street analysts see significant upside, with an average price target of $115.00 (+26.1%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.

Quick Decision Summary

Current Position EXTENDED
Historical Trading Range $85.34 - $91.09
Company Quality Score 48/100 (HOLD)
Volume Confirmation HIGH
Confidence Score 62.9%

All Signals

  • BEARISH: Price extended above range
  • BULLISH: Strong technical setup (60/100)
  • BULLISH: High volume confirmation
  • BULLISH: Trading 26.1% below Wall St target ($115.00)
  • NEUTRAL: Market pricing in 2.5% annual earnings growth - fairly valued

Trading Range Analysis

30-Day Trading Range $85.34 - $91.09
Current vs Trading Range EXTENDED

Support & Resistance Levels

Support Level $83.33
Resistance Level $94.45
Current Trend Downtrend
Technical data as of Jul 28, 2026

Fundamental Context

Forward P/E (Next Year Est.) 25.70
Wall Street Target $115.00 (+26.1%)
Revenue Growth (YoY) 5.5%
Earnings Growth (YoY) 74.2%
Profit Margin 42.0%
Valuation Premium vs History +2.5% premium
PE vs Historical 25.7 vs 23.9 FAIR
Market-Implied Price Targets If current PE multiple persists
Implied Growth (YoY): +2.5% (market-implied from PE analysis)
1-Year Target $93.50 (+3%)
2-Year Target $95.84 (+5%)
3-Year Target $98.23 (+8%)
3-Yr Target (if PE normalizes) (PE: 26→24) PE COMPRESSION $91.37 (+0%)
Earnings growth offset by PE compression
3-Year Scenarios Using analyst projected EPS growth
Bull: (PE: 25.7, Growth: -40.6%) $66.50 (+-27%)
Base: (SPY PE: 20.8, Growth: -40.6%) $53.86 (-41%)
Bear: (PE: 17.7, Growth: -40.6%) $45.78 (-50%)
📈 Valuation based on Current Earnings
Trailing PE: 12.96 | Current EPS (TTM): $6.79
Bull Case $50.60 (-45%)
Analyst growth -47.7%, PE expands to 14.3
Base Case $46.00 (-50%)
Market implied -47.7%, PE stable at 13.0
Bear Case $59.83 (-34%)
Severe decline -20.0%, PE contracts to 11.0
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
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Last updated: July 28, 2026 2:26 PM ET
Data refreshes hourly during market hours. Next update: 3:26 PM
🔥 Top Stocks Breaking Out Now
Ticker Score Recommendation Change %
Insider Activity (6 Months)
0
Buys
11
Sells
Net
INSIDERS SELLING
Recent Transactions
Aparna Bawa SELL 12886 shares 2026-04-17
Santiago Subotovsky SELL 2388 shares 2026-04-16
Santiago Subotovsky SELL 2643 shares 2026-04-16

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