As the world zoomed through the pandemic, Zoom Video Communications’ ZM stock took a hit, declining by 15% over the past year and 13.6% year-to-date.
Currently trading at a forward P/E of 12.56, well below the sector median of 25.4, the San Jose-based company is poised to release its fourth-quarter earnings on Feb. 26, with the Street anticipating $1.15 EPS and $1.11 billion in revenue.
Insights from Analysts: JPMorgan’s Mark R. Murphy rates Zoom stock Neutral with a price target of $83, implying a 33.69% upside from its current price of $62.12 per share.
Evaluating Zoom’s Potential: Murphy delves into the market dynamics surrounding Zoom, highlighting the company’s multifaceted growth into various sectors beyond video conferencing.
While Zoom saw unprecedented growth during the pandemic, its expansion has slowed in the post-pandemic scenario as it adapts to the changing work landscape.
Despite being an industry leader known for innovation, Zoom’s current stock valuation portrays it as undervalued, presenting an enticing investment prospect with a predicted upside of over 30%.
However, concerns arise regarding potential mergers and acquisitions (M&A) in the future, casting a shadow of uncertainty over Zoom’s trajectory.
Zoom’s stock closed at $62.12 on Feb. 22, reflecting the wavering sentiment surrounding its growth prospects.