ZM Stock Analysis: Buy, Sell, or Hold?

ZM - Zoom Communications, Inc. Class A Common Stock

SERVICES-COMPUTER PROGRAMMING, DATA PROCESSING, ETC.
$107.43
1.13 (1.06%) ▲
5d: +1.39%
30d: +27.73%
90d: +11.04%
WAIT
LOW Confidence
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Analysis Updated: Aug 21, 2026 12:00 AM ET
Earnings: Aug 25, 2026 2d
Smart Money Distribution

Options positioning is turning defensive after a sharp run-up - a pattern consistent with institutional profit-taking. View Scanner →

Signal fired Aug 7, 2026 at $104.50 · last confirmed Aug 18, 2026

Strength: 7.7/10

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Interactive Price Chart (1 Month)

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💡
Bottom Line:
📊 MIXED SIGNALS: ZM shows conflicting indicators. Wait for confirmation before entering.
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
$28.52
Based on -18.3% avg growth
INTRINSIC VALUE TODAY
$17.71
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 24.3x Exit PE.

In-depth Analysis How we analyze

Valuation Analysis: ZM is currently trading at $107.43, which is considered extended relative to its 30-day fair value range of $90.21 to $105.41. From a valuation perspective, the stock is trading at a premium (Forward PE: 29.9) compared to its historical average (24.3). At these levels, the market is pricing in 7.2% 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 $103.29, while resistance sits at $110.89.

Market Sentiment: ZM scores 23/100 on our bottoming-setup gauge. Note this measures entry quality, not trend direction — a low score can mean the chart is extended after a strong run (don't chase) or still falling without stabilization; better entries typically come after a pullback toward the 20-day average. Current signals suggest waiting for a better entry point before initiating new positions.

Quick Decision Summary

Current Position EXTENDED
Historical Trading Range $90.21 - $105.41
Company Quality Score 39/100 (SELL)
Volume Confirmation HIGH
Confidence Score 22.9%

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All Signals

  • BEARISH: Price extended above range
  • BEARISH: Weak technical setup (23/100)
  • BULLISH: High volume confirmation
  • NEUTRAL: Near Wall St target ($115.00)
  • NEUTRAL: Trading at premium valuation - market expects 7.2% growth which is achievable
  • WARNING: Composite score 39/100 in the bottom quintile — this cohort historically lags the market

Trading Range Analysis

30-Day Trading Range $90.21 - $105.41
Current vs Trading Range EXTENDED

Support & Resistance Levels

Support Level $103.29
Resistance Level $110.89
Current Trend Downtrend
Technical data as of Aug 21, 2026

Fundamental Context

Forward P/E (Next Year Est.) 29.94
Wall Street Target $115.00 (+8.2%)
Revenue Growth (YoY) 5.5%
Earnings Growth (YoY) 74.2%
Profit Margin 42.0%
Valuation Premium vs History +7.2% premium
PE vs Historical 29.9 vs 24.3 STRETCHED
Market-Implied Price Targets If current PE multiple persists
Implied Growth (YoY): +7.2% (market-implied from PE analysis)
1-Year Target $113.95 (+7%)
2-Year Target $122.16 (+15%)
3-Year Target $130.95 (+23%)
3-Yr Target (if PE normalizes) (PE: 30→24) PE COMPRESSION $106.27 (0%)
Earnings growth offset by PE compression
3-Year Scenarios Using analyst projected EPS growth
Bull: (PE: 29.9, Growth: -40.6%) $77.49 (+-27%)
Base: (SPY PE: 20.1, Growth: -40.6%) $51.94 (-51%)
Bear: (PE: 17.1, Growth: -40.6%) $44.15 (-59%)
📈 Valuation based on Current Earnings
Trailing PE: 15.44 | Current EPS (TTM): $6.96
Bull Case $60.30 (-44%)
Analyst growth -49.0%, PE expands to 17.0
Base Case $54.82 (-49%)
Market implied -49.0%, PE stable at 15.4
Bear Case $73.08 (-32%)
Severe decline -20.0%, PE contracts to 13.1
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
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Last updated: August 22, 2026 10:32 AM ET
Data refreshes hourly during market hours. Next update: 11:32 AM
🔥 Top Stocks Breaking Out Now
Ticker Score Recommendation Change %
Insider Activity (6 Months)
0
Buys
9
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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Advanced ZM Option Strategies

Professional options setups generated by AI based on today's ZM price and gamma walls.

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