Zoom Video Communications Inc. (ZM:NSD) Analysts rate with a Buy, $201 target

STA Research
by: STA Research

Based on the Zoom Video Communications Inc. stock forecasts from 24 analysts, the average analyst target price for Zoom Video Communications Inc. is USD 201.42 over the next 12 months. Zoom Video Communications Inc.’s average analyst rating is Buy. Stock Target Advisor’s own stock analysis of Zoom Video Communications Inc. is Slightly Bullish, which is based on 8 positive signals and 4 negative signals. At the last closing, Zoom Video Communications Inc.’s stock price was USD 84.80. Zoom Video Communications Inc.’s stock price has changed by -24.18% over the past week, -24.25% over the past month and -70.73% over the last year.

A global unified communications platform provider, Zoom Video Communications Inc. has offices in the Americas and Asia. With Zoom Meetings, users can stream HD video and audio from mobile devices to desktops and conference rooms. Zoom Communications, Inc. renamed Zoom Video Communications, Inc. in May 2012. The company was founded in 2011 in San Jose, California.

Analyst’s Recent Ratings:

 

What we like:

High market capitalization

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Superior return on equity

The company management has delivered better return on equity in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior capital utilization

The company management has delivered better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior return on assets

The company management has delivered better return on assets in the most recent 4 quarters than its peers, placing it in the top quartile.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

Superior Earnings Growth

This stock has shown top quartile earnings growth in the previous 5 years compared to its sector.

Superior Revenue Growth

This stock has shown top quartile revenue growth in the previous 5 years compared to its sector.

 

What we don’t like:

High volatility

The total returns for this company are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Overpriced compared to book value

The stock is trading high compared to its peers median on a price to book value basis.

Overpriced on cashflow basis

The stock is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Overpriced on free cash flow basis

The stock is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

 

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