Some Shareholders Feeling Restless Over Zoom Communications Inc.'s (NASDAQ:ZM) P/E Ratio

Simply Wall St.02-01 22:36

With a price-to-earnings (or "P/E") ratio of 28.3x Zoom Communications Inc. (NASDAQ:ZM) may be sending very bearish signals at the moment, given that almost half of all companies in the United States ...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2508975352?lang=en_US&edition=fundamental","thumbnail":"https://images.simplywall.st/asset/industry/8041000-choice2-main-header/1585186556238","is_english":true,"pubTime":"2025-02-01 22:36","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2508975352","market":"hk","top_or_hot":-1,"title":"Some Shareholders Feeling Restless Over Zoom Communications Inc.'s (NASDAQ:ZM) P/E Ratio","media":"Simply Wall St.","content":"<div>\n<p>With a price-to-earnings (or \"P/E\") ratio of 28.3x Zoom Communications Inc. (NASDAQ:ZM) may be sending very bearish signals at the moment, given that almost half of all companies in the United States ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/software/nasdaq-zm/zoom-communications/news/some-shareholders-feeling-restless-over-zoom-communications\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Some Shareholders Feeling Restless Over Zoom Communications Inc.'s (NASDAQ:ZM) P/E Ratio</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nSome Shareholders Feeling Restless Over Zoom Communications Inc.'s (NASDAQ:ZM) P/E Ratio\n</h2>\n\n<h4 class=\"meta\">\n\n\n2025-02-01 22:36 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/us/software/nasdaq-zm/zoom-communications/news/some-shareholders-feeling-restless-over-zoom-communications><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>With a price-to-earnings (or \"P/E\") ratio of 28.3x Zoom Communications Inc. (NASDAQ:ZM) may be sending very bearish signals at the moment, given that almost half of all companies in the United States ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/software/nasdaq-zm/zoom-communications/news/some-shareholders-feeling-restless-over-zoom-communications\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4525","symbol_name":"远程办公概念","start_time":0,"source_url":"https://simplywall.st/stocks/us/software/nasdaq-zm/zoom-communications/news/some-shareholders-feeling-restless-over-zoom-communications","article_id":"2508975352","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/8041000-choice2-main-header/1585186556238"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2508975352","pubTimestamp":1738420606,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"With a price-to-earnings (or \"P/E\") ratio of 28.3x Zoom Communications Inc. ( NASDAQ:ZM ) may be sending very bearish...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4525":"远程办公概念","USAW.SI":"AMZN 3xLongSG261006","BK4535":"淡马锡持仓","BK4588":"碎股","LU1861559042.SGD":"日兴方舟颠覆性创新基金B SGD","TSYW.SI":"TESLA 3xLongSG261006","BK4551":"寇图资本持仓","BK4505":"高瓴资本持仓","LU2095319765.USD":"Natixis Thematics Subscription Economy R/A USD","QID":"纳指两倍做空ETF","LU2210150020.SGD":"Natixis Thematics Subscription Economy R/A SGD","BK4548":"巴美列捷福持仓","TQQQ":"纳指三倍做多ETF","LU2210149790.SGD":"Natixis Thematics Subscription Economy R/A SGD-H","BK4112":"金融交易所和数据","NDAQ":"纳斯达克OMX交易所","IE00BKPKM429.USD":"NEUBERGER BERMAN GLOBAL SUSTAINABLE EQUITY \"A\" (USD) ACC",".IXIC":"NASDAQ Composite","IE00B64PRP62.GBP":"GUINNESS GLOBAL MONEY MANAGERS \"C\" (GBP) ACC","BK4023":"应用软件","BK4528":"SaaS概念","NVIW.SI":"NVDA 3xLongSG261006","IE00B3QW5Z07.USD":"GUINNESS GLOBAL MONEY MANAGERS \"C\" (USD) ACC","BK4554":"元宇宙及AR概念","PSQ":"纳指反向ETF","BK4532":"文艺复兴科技持仓","SQQQ":"纳指三倍做空ETF","IE00BGHQF748.EUR":"GUINNESS GLOBAL MONEY MANAGERS \"C\" (EUR) ACC","ZM":"Zoom","USJW.SI":"ALPHAB 3xLongSG261006","QLD":"纳指两倍做多ETF","BK4585":"ETF&股票定投概念","LU1861558580.USD":"日兴方舟颠覆性创新基金B"},"translate_title":"一些股东对Zoom Communications Inc.（纳斯达克：ZM）的市盈率感到不安","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"ZM":1,".IXIC":1,"NDAQ":1,"USAW.SI":0.6,"TSYW.SI":0.6,"TQQQ":0.6,"SQQQ":0.6,"QLD":0.6,"QID":0.6,"PSQ":0.6,"NVIW.SI":0.6,"USJW.SI":0.6,"MNQmain":0.6,"NQmain":0.6},"content_text":"With a price-to-earnings (or \"P/E\") ratio of 28.3x Zoom Communications Inc. (NASDAQ:ZM) may be sending very bearish signals at the moment, given that almost half of all companies in the United States have P/E ratios under 18x and even P/E's lower than 11x are not unusual.  Although, it's not wise to just take the P/E at face value as there may be an explanation why it's so lofty.     Recent times have been advantageous for Zoom Communications as its earnings have been rising faster than most other companies.   The P/E is probably high because investors think this strong earnings performance will continue.  If not, then existing shareholders might be a little nervous about the viability of the share price.      Check out our latest analysis for Zoom Communications NasdaqGS:ZM Price to Earnings Ratio vs Industry February 1st 2025 If you'd like to see what analysts are forecasting going forward, you should check out our free report on Zoom Communications.  Does Growth Match The High P/E?   There's an inherent assumption that a company should far outperform the market for P/E ratios like Zoom Communications' to be considered reasonable.   Taking a look back first, we see that the company grew earnings per share by an impressive 288% last year.    Despite this strong recent growth, it's still struggling to catch up as its three-year EPS frustratingly shrank by 21% overall.  So unfortunately, we have to acknowledge that the company has not done a great job of growing earnings over that time.     Turning to the outlook, the next three years should generate growth of 0.2%  per annum as estimated by the analysts watching the company.  That's shaping up to be materially lower than the 11% per annum growth forecast for the broader market.  With this information, we find it concerning that Zoom Communications is trading at a P/E higher than the market.  Apparently many investors in the company are way more bullish than analysts indicate and aren't willing to let go of their stock at any price.  There's a good chance these shareholders are setting themselves up for future disappointment if the P/E falls to levels more in line with the growth outlook.    What We Can Learn From Zoom Communications' P/E?  We'd say the price-to-earnings ratio's power isn't primarily as a valuation instrument but rather to gauge current investor sentiment and future expectations.  Our examination of Zoom Communications' analyst forecasts revealed that its inferior earnings outlook isn't impacting its high P/E anywhere near as much as we would have predicted.  Right now we are increasingly uncomfortable with the high P/E as the predicted future earnings aren't likely to support such positive sentiment for long.  Unless these conditions improve markedly, it's very challenging to accept these prices as being reasonable.      We don't want to rain on the parade too much, but we did also find 1 warning sign for Zoom Communications that you need to be mindful of.   You might be able to find a better investment than Zoom Communications. If you want a selection of possible candidates, check out this free list of interesting companies that trade on a low P/E (but have proven they can grow earnings). Valuation is complex, but we're here to simplify it.Discover if Zoom Communications might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.Access Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"-1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.30.2","shortVersion":"4.30.2","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2508975352"}