ZM · NASDAQ · STOCK
Zoom Communications (ZM) Stock Analysis
$97.75
52W $70.70 – $114.74
63/100
$28.66B
8.9
1.03
⚠
Buy rating, but near-term risk/reward is unfavorable
The long-term recommendation is based on the composite investment score. The near-term risk/reward is based on nearby support and resistance levels. These can differ when a strong company trades close to resistance with support further below.
Is ZM Bullish or Bearish?
Bullish.
Innellis AI committee rates Zoom Communications, Inc. (ZM) Buy with a composite score of 63/100
, based on 6 analysts with 67% agreement.
Last updated October 10, 2026.
What Would Change This View
- Upgrade to Strong Buy
- Requires a committee score of 75.0 — +12.19 from today. Applies on the first day at or above the line; upgrades are never dampened.
- Downgrade to Watch
- Requires the score to fall below 55.0 — -7.81 from today. The band boundary is 60.0, but a one-step downgrade must clear a further margin first. A score oscillating around the line should not change the rating every night.
Executive Summary
The committee is genuinely divided. Risk Analyst sees a compelling case — low leverage (debt-to-equity 0.00) -- balance sheet can absorb a shock. Portfolio Manager remains cautious — sector concentration is already high (hhi 2796.97). This disagreement is itself the signal — the setup is not clean in either direction.
Bull & Bear Case
Bull Case
- P/E of 8.1 is inexpensive for the broad market — Value
- ROE of 32.2% shows genuine earnings power backing the valuation — Value
- EPS growing 184.3% YoY — Growth
- MACD histogram positive -- bullish momentum — Technical
- Low leverage (debt-to-equity 0.00) -- balance sheet can absorb a shock — Risk
Bear Case
- Growth rate is decelerating quarter over quarter -- the trend line matters more than the level — Growth
- RSI at 73 is in overbought territory — Technical
- Price trading above the upper Bollinger Band -- stretched — Technical
Both cases are generated from quantitative data signals, not qualitative or
forward-looking judgement. They summarise what the numbers say today.
Price History (6M)
AI Investment Committee
Committee Consensus
As of October 10, 2026
Overall Committee Score
63/100
Agreement
67%
Analysts
6
Conviction
Moderate
Sector Rank
Top 17%
of 287 Technology peers
Value Analyst
bullish
70
/ 100 · High confidence
Classic value case: cheap on multiples with earnings power to back it up
+ P/E of 8.1 is inexpensive for the broad market
Growth Analyst
neutral
53
/ 100 · High confidence
Moderate growth -- present but not remarkable
+ EPS growing 184.3% YoY
− Growth rate is decelerating quarter over quarter -- the trend line matters more than the level
Technical Analyst
neutral
48
/ 100 · High confidence
Mixed or range-bound price action
+ MACD histogram positive -- bullish momentum
− RSI at 73 is in overbought territory
Risk Analyst
bullish
80
/ 100 · Low confidence
Risk profile is manageable -- leverage, volatility, and event exposure all look contained
+ Low leverage (debt-to-equity 0.00) -- balance sheet can absorb a shock
Macro Analyst
bullish
65
/ 100 · Low confidence
Macro backdrop is supportive of risk assets generally, and this name's beta works in its favor
News Analyst
bullish
60
/ 100 · Low confidence
News flow and recent filings/analyst actions are net positive
Portfolio Manager
bearish
30
/ 100 · Moderate confidence
The existing book itself argues for caution here, independent of how good this specific stock looks
− Sector concentration is already high (HHI 2796.97)
Investment Thesis Evolution
Committee score moved marginally from 64.4 to 62.8.
- New bearish signals: 2 appeared.
- Bullish support removed: 1 signal(s) disappeared.
- New bullish signals: 1 appeared.
Analyst-level changes:
- Technical Analyst: score 58->48 (-10); +2 bearish signal(s).
- Value Analyst: +1 bullish signal(s).
Comparing 2026-10-09 to 2026-10-10 (1 day apart).
Technical Analysis
RSI (14)
72.7
Overbought
MACD Histogram
0.959
Bullish Momentum
Trend Direction
Sideways
Weekly: Uptrend
Market Structure
Hh Hl
Support
$82.30
Resistance
$110.75
Bollinger %B
1.04
Above Upper Band
Price vs Moving Averages
EMA 9
$94.10
Above
EMA 21
$93.73
Above
EMA 50
$94.74
Above
EMA 200
$91.80
Above
Fundamental Analysis
Valuation
95
Growth
55
Profitability
99
Financial Health
100
Cash Flow
70
Valuation
P/E Ratio
8.9×
P/B Ratio
2.54×
PEG Ratio
0.05
Dividend Yield
0.00%
52W High
$114.74
52W Low
$70.70
Quality & Growth
ROE
1937.3%
ROA
1588.7%
Gross Margin
7729.9%
Operating Margin
2373.5%
Revenue Growth YoY
—
Debt / Equity
0.01
AI Fundamental Assessment
P/E ratio of 8.9 (inexpensive relative to a 15-40x range); Price-to-book of 2.5x; PEG ratio of 0.0 (under 1.0 suggests growth is undervalued relative to price); Return on equity of 19.4%; Return on assets of 15.9%; Net margin of 65.2%; Gross margin of 77.3%; Current ratio of 3.83 (healthy short-term liquidity); Debt-to-equity of 0.01; Free cash flow per share is positive (6.56); Most recent quarter beat estimates by 1.9%; 2 consecutive earnings beats; EPS growth decelerating (+7.6% -> +0.0% QoQ); Average YoY EPS growth of 1.3%; Analyst estimates flat over recent quarters
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