Zoom Communications, Inc. (ZM) Up 5.4% — Should I Make My Move Here?
Zoom Communications, Inc. (ZM) extended its recent bullish activity with a strong advance in the latest session, closing at $90.40, up 5.39% from the prior day. In dollar terms, the stock gained $4.62, marking a notable upside move that underscores firm buying interest. This latest surge pushes shares closer to the upper end of their 52-week range between $64.41 and $91.43, signaling that the stock is gaining ground after spending much of the past year trading at lower levels.
The current price now sits less than $1 below the 52-week high of $91.43 set on 12/12/2025, highlighting how aggressively the stock has been advancing toward new high territory. Trading volume reached 1,602,695 shares, which is below the 90-day average volume of 2,773,681, suggesting that the latest move higher occurred without unusually heavy turnover. Even so, the size of the price gain relative to typical daily moves points to strong performance and sustained upward momentum. For investors tracking technical levels, the proximity to the 52-week high places Zoom in a position where a modest continuation of recent strength could push the stock into fresh high ground, reinforcing the current bullish trend.
Why Zoom Communications, Inc. Price is Moving Higher
Investors are growing more constructive on Zoom Communications, Inc. as attention shifts from recent short-term weakness to a steadier fundamental story. The stock’s mixed performance comes against the backdrop of anticipated earnings that point to renewed growth: Wall Street expects EPS of $1.48, up 4.96% year over year, on revenue of $1.23 billion, an improvement of 4.08%. On a full-year basis, projections for $5.96 in EPS and $4.85 billion in revenue reinforce the view that Zoom is stabilizing after its post-pandemic reset. Sequential revenue is already edging higher, with the latest quarter’s $1.23 billion up 0.8% from $1.22 billion, signaling that demand for its software and services platform is holding up despite fierce competition.
Valuation is another catalyst supporting bullish sentiment. Zoom is trading at a forward P/E of 14.53, meaningfully below the information technology industry average of 25.1. That discount is drawing interest from investors who see room for multiple expansion if the company delivers on its earnings trajectory. Analyst targets reflect this cautiously positive stance: consensus “Hold” ratings are paired with average 12‑month price objectives in the $91.74–$96.07 range, implying 8%–9% upside from recent levels. Combined with solid EPS of $5.15, a roughly $25 billion market presence, and evidence of resilient revenue growth, these factors are fueling expectations that Zoom can convert operational progress into sustained share price momentum as earnings catalysts approach.
What is the Zoom Communications, Inc. Rating - Should I Buy?
Weiss Ratings assigns ZM a B rating. Current recommendation is Buy. This places Zoom Communications, Inc. in the higher-quality tier of Information Technology sector, indicating an overall favorable balance of opportunity and risk for investors who can tolerate normal market volatility. A B rating means the company has demonstrated enough financial and market strength to merit consideration as part of a diversified portfolio, rather than as a speculative trade.
Supporting this overall view, Zoom benefits from the Excellent Growth Index, signaling that the company’s underlying business trends, including revenue expansion and operating performance, are materially stronger than average. The Good Efficiency Index further indicates that management is using capital relatively well, generating respectable returns from its assets and investments. Together, these strengths help justify the Buy stance despite the competitive nature of the technology sector.
On the risk side, the Good Volatility Index shows that while the stock can move sharply at times, its risk profile has generally been reasonable compared with potential rewards. The Good Solvency Index points to a solid balance sheet and a comfortable ability to meet financial obligations, an important support for long-term investors in a fast-changing industry.
Relative to other technology names, Zoom stands out positively. Cisco Systems, Inc. (CSCO, C) and International Business Machines Corporation (IBM, C) both sit at Hold, indicating more middle-of-the-road profiles. By contrast, Zoom’s B (Buy) Weiss Rating signals a more attractive risk/reward setup within the Information Technology space for investors seeking quality growth exposure.
About Zoom Communications, Inc.
Zoom Communications, Inc. (ZM) is a leading Information Technology company in the Software and Services industry, specializing in an artificial intelligence–first work platform designed to enhance human connection and collaboration. Headquartered in San Jose, California and incorporated in 2011, Zoom has built a globally recognized brand across the Americas, Asia Pacific, Europe, the Middle East, and Africa. The company began with its flagship Zoom Meetings product, which delivers HD video, voice, chat, and content sharing across devices and conference room systems, and has since expanded into a comprehensive collaboration suite that supports hybrid and distributed work models.
Today, Zoom’s platform extends well beyond video conferencing. Core offerings include Zoom Phone, a cloud-based business phone system, and Zoom Team Chat for persistent messaging and content sharing. Zoom Mail, Zoom Calendar, Zoom Docs, Zoom Whiteboard, and Zoom Clips create an integrated digital workspace aimed at streamlining communication and content creation. The company also emphasizes workflow productivity through Zoom Workflow Automation, a no-code tool that connects Zoom Workplace with third-party applications. In customer engagement and events, Zoom offers Zoom Contact Center, Zoom Revenue Accelerator, Zoom Events, Zoom Sessions, and Zoom Webinars to support omnichannel contact centers and large-scale virtual or hybrid experiences.
Complementing these solutions are Workvivo, an employee experience platform, Zoom Rooms for conference room collaboration, Workspace Reservation, the Zoom Developer Platform, App Marketplace, and Zoom Apps, which collectively enable deep integration into enterprise infrastructure. Serving individuals as well as sectors such as education, healthcare, government, finance, entertainment, and manufacturing, Zoom’s broad product ecosystem and AI-first strategy reinforce its position as a key player in modern workplace communications.
Investor Outlook
With a B (Buy) Weiss Rating, Zoom Communications, Inc.(ZM) appears favorably positioned for investors seeking exposure to Information Technology names with potential for continued gains. The key will be how the stock behaves around recent trading ranges and how broader tech sentiment and risk appetite evolve, as these could influence whether the current risk/reward profile strengthens or weakens. See full rankings of all B-rated Information Technology stocks inside the Weiss Stock Screener.
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