Zoom Earns Bullish Analyst Backing Following Better-Than-Expected Quarter

Twenty-five research firms have assigned Zoom Communications a "Moderate Buy" consensus rating with an average price target of $113.62, representing upside from the current share price of $92.88. Zoom exceeded quarterly expectations with earnings per share of $1.55 against a $1.48 consensus estimate and revenue of $1.28 billion, achieving 4.9% year-over-year growth. Institutional investors own approximately 66.54% of the company's stock.

Zoom's recent financial performance demonstrates resilience in a competitive videoconferencing market, with the company delivering earnings that surpassed Wall Street's expectations by a modest margin. The consensus rating reflects cautious optimism among analysts, with roughly equal numbers favoring accumulation versus holding positions. Notably, insider selling activity over recent months suggests company executives may view current valuations as fairly priced, even as institutional investors maintain substantial confidence through their two-thirds ownership stake.

The company's guidance for fiscal 2027 projects continued modest growth, indicating management expects single-digit percentage revenue increases to persist. With a relatively low price-to-earnings ratio of 8.60 compared to broader market averages, Zoom appears to be trading at a discount despite its dominant market position and exceptional profit margins exceeding 65%.