ZM Stock Analysis: Buy, Sell, or Hold?

ZM - Zoom Communications, Inc. Class A Common Stock

SERVICES-COMPUTER PROGRAMMING, DATA PROCESSING, ETC.
$92.10
-0.48 (-0.52%) ▼
HOLD
MODERATE Confidence
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Last Updated: January 30, 2026
Earnings: Feb 23, 2026 22d

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Interactive Price Chart (1 Month)

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💡
Bottom Line:
📊 HOLD: ZM trades at premium valuation expecting 10.2% growth. Hold existing positions but don't chase. Wait for better entry.

Long-Term Wealth Forecast (2031)

Based on Analyst Consensus Growth & Historical Valuation

0% (Stagnation) 50% (Hyper Growth)
EST. PRICE IN 2031
$22.97
Based on -18.3% avg growth
INTRINSIC VALUE TODAY
$14.26
Trading above fair value

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 19.5x Exit PE.

In-depth Analysis How we analyze

Valuation Analysis: ZM is currently trading at $92.10, which is considered extended relative to its 30-day fair value range of $82.62 to $90.99. From a valuation perspective, the stock is trading at a premium (Forward PE: 26.1) compared to its historical average (19.5). At these levels, the market is pricing in 10.2% 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 $79.77, while resistance sits at $97.58.

Market Sentiment: ZM has a strong technical setup (75/100), with favorable trendlines, momentum, and price action for short-term traders. The stock is fairly positioned - fine to hold existing positions or accumulate slowly on dips, but not an urgent buy.

Quick Decision Summary

Current Position EXTENDED
Fair Price Range $82.62 - $90.99
Company Quality Score 62/100 (BUY)
Volume Confirmation HIGH
Confidence Score 57.1%

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All Signals

  • BEARISH: Price extended above range
  • BULLISH: Strong technical setup (75/100)
  • BULLISH: High volume confirmation
  • NEUTRAL: Near Wall St target ($96.92)
  • NEUTRAL: PE elevated vs history but 10.2% growth expectation is conservative given 205% recent growth

Fair Price Analysis

30-Day Fair Range $82.62 - $90.99
Current vs Fair Value EXTENDED

Support & Resistance Levels

Support Level $79.77
Resistance Level $97.58
Current Trend Downtrend

Fundamental Context

Forward P/E (Next Year Est.) 26.08
Wall Street Target $96.92 (+4.7%)
Revenue Growth (YoY) 4.4%
Earnings Growth (YoY) 204.9%
Profit Margin 33.2%
Valuation Premium vs History +10.2% premium
PE vs Historical 26.1 vs 19.5 STRETCHED
Market-Implied Price Targets If current PE multiple persists
Implied Growth (YoY): +10.2% (market-implied from PE analysis)
1-Year Target $102.02 (+10%)
2-Year Target $112.43 (+21%)
3-Year Target $123.90 (+34%)
3-Yr Target (if PE normalizes) (PE: 26→20) PE COMPRESSION $92.64 (+0%)
Earnings growth offset by PE compression
3-Year Scenarios Using analyst projected EPS growth
Bull: (PE: 26.1, Growth: -40.5%) $67.49 (+-27%)
Base: (SPY PE: 22.3, Growth: -40.5%) $57.71 (-38%)
Bear: (PE: 19.0, Growth: -40.5%) $49.05 (-47%)
📈 Valuation based on Current Earnings
Trailing PE: 18.72 | Current EPS (TTM): $5.14
Bull Case $73.10 (-21%)
Analyst growth -30.9%, PE expands to 20.6
Base Case $66.46 (-28%)
Market implied -30.9%, PE stable at 18.7
Bear Case $65.43 (-29%)
Severe decline -20.0%, PE contracts to 15.9
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
Last updated: January 31, 2026 3:55 AM ET
Data refreshes hourly during market hours. Next update: 4:55 AM
🔥 Top Stocks Breaking Out Now
Ticker Score Recommendation Change %
Insider Activity (6 Months)
0
Buys
12
Sells
Net
INSIDERS SELLING
Recent Transactions
Eric S Yuan SELL 73378 shares 2025-10-23
Eric S Yuan SELL 73383 shares 2025-10-22
Aparna Bawa SELL 10528 shares 2025-10-16

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Advanced ZM Option Strategies

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

Iron Condor Bull Call Bear Put Collar

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