Why Are People Talking About Investing in ZM?

By Blake Campbell • Friday, September 08 12:31 • Permanent Link

Join us for a quick overview of Zoom Video Communications, a Software company whose shares moved -1.7% today. Here are some facts about the stock that should help you see the bigger picture:

Zoom Video Communications has moved -12.0% over the last year, and the S&P 500 logged a change of 11.0%
ZM has an average analyst rating of hold and is -5.7% away from its mean target price of $76.8 per share
Its trailing earnings per share (EPS) is $0.47
Zoom Video Communications has a trailing 12 month Price to Earnings (P/E) ratio of 154.1 while the S&P 500 average is 15.97
Its forward earnings per share (EPS) is $4.24 and its forward P/E ratio is 17.1
The company has a Price to Book (P/B) ratio of 3.11 in contrast to the S&P 500's average ratio of 2.95
Zoom Video Communications is part of the Technology sector, which has an average P/E ratio of 27.16 and an average P/B of 6.23
ZM has reported YOY quarterly earnings growth of 299.4% and gross profit margins of 0.8%
The company has a free cash flow of $1.54 Billion, which refers to the total sum of all its inflows and outflows of cash over the last quarter
Zoom Video Communications, Inc. provides unified communications platform in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. The company offers Zoom Meetings that offers HD video, voice, chat, and content sharing through mobile devices, desktops, laptops, telephones, and conference room systems; Zoom Phone, an enterprise cloud phone system; and Zoom Chat enables users to share messages, images, audio files, and content in desktop, laptop, tablet, and mobile devices. It also provides Zoom Rooms, a software-based conference room system; Zoom Hardware-as-a-Service allows users to access video communication technology from third party equipment; Zoom Conference Room Connector, a gateway for SIP/H.323 endpoints to join Zoom meetings; Zoom Events, which enables users to manage and host internal and external virtual events; OnZoom, a prosumer-focused virtual event platform and marketplace for Zoom users to create, host, and monetize online events; and Zoom Webinars to provide video presentations to large audiences from many devices. In addition, the company offers Zoom Developer Platform that enables developers, platform integrators, service providers, and customers to build apps and integrations using Zoom's video-based communications solutions, as well as integrate Zoom's technology into their products and services; Zoom App Marketplace, which helps developers to publish their apps, as well as third-party integrations of Zoom; and Zoom Contact Center, an omnichannel contact center solution. It serves individuals; and education, entertainment/media, enterprise infrastructure, finance, government, healthcare, manufacturing, non-profit/not for profit and social impact, retail/consumer products, and software/Internet industries. The company was formerly known as Zoom Communications, Inc. and changed its name to Zoom Video Communications, Inc. in May 2012. The company was incorporated in 2011 and is headquartered in San Jose, California.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.