Core Viewpoint - Zoom Communications is experiencing a mixed performance in the stock market, with a recent decline in stock price despite positive earnings forecasts and a strong Zacks Rank indicating potential for growth [1][6]. Financial Performance - The upcoming earnings report for Zoom Communications is expected to show an EPS of $1.42, reflecting a 2.9% increase from the same quarter last year, with projected quarterly revenue of $1.21 billion, up 2.99% year-over-year [2]. - For the annual period, earnings are anticipated to be $5.81 per share and revenue is expected to reach $4.82 billion, indicating increases of 4.87% and 3.38% respectively compared to the previous year [3]. Analyst Estimates - Recent adjustments to analyst estimates for Zoom Communications suggest a positive outlook for the company's business operations and profitability, with upward revisions indicating confidence in short-term performance [4]. - The Zacks Consensus EPS estimate has increased by 1.12% over the past month, and Zoom Communications currently holds a Zacks Rank of 1 (Strong Buy), which has historically outperformed the market [6]. Valuation Metrics - Zoom Communications is currently trading at a Forward P/E ratio of 14.39, significantly lower than the industry average of 31, indicating that the stock is undervalued compared to its peers [7]. - The company has a PEG ratio of 7.16, which is higher than the Internet - Software industry's average PEG ratio of 2.27, suggesting that the stock's expected earnings growth is not fully reflected in its price [8]. Industry Context - The Internet - Software industry, part of the Computer and Technology sector, has a Zacks Industry Rank of 59, placing it in the top 24% of over 250 industries, indicating a strong competitive position [8][9].

Core Insights - The article discusses the 13 best quality stocks to buy currently, emphasizing their ability to endure macroeconomic unpredictability and capture growth trends in technology, healthcare, and energy [1][4]. Group 1: Market Trends - On September 29, 2025, gold reached a record high above $3,800, while oil prices fell due to new supply expectations [2]. - U.S. and global stock markets saw minor increases despite concerns over a potential U.S. government shutdown, with the S&P 500, Nasdaq Composite, and Dow Jones Industrial Average all posting gains [2]. - Analysts noted that Q4 typically supports stock performance due to seasonal buying patterns, with investor confidence still being influenced by Federal Reserve policy [3]. Group 2: Stock Selection Methodology - The list of the 13 best quality stocks was curated using the Finviz screener, focusing on companies with a positive net profit margin and a minimum revenue CAGR of 20% over the past five years [6]. - Stocks were ranked based on the number of hedge funds holding stakes as of Q2 2025, utilizing Insider Monkey's hedge fund database [6][7]. Group 3: Company Highlights - Fortinet, Inc. (NASDAQ:FTNT) is highlighted for its significant upside potential, despite a downgrade from Morgan Stanley due to concerns about a shorter-than-expected firewall refresh cycle [8]. - Fortinet continues to grow its product line and maintains a strong financial position with more cash than debt, alongside excellent free cash flow generation [9]. - Zoom Communications, Inc. (NASDAQ:ZM) is recognized for its strong financial metrics, including a 5-year revenue growth of 28.69% and a profit margin of 24.99%, supported by hedge fund interest [12]. - Agnico Eagle Mines Limited (NYSE:AEM) demonstrated significant upside potential, selling shares of Royal Road Minerals Limited for nearly $4.1 million, reflecting a strategic approach to capital allocation [17][18].

[Music] Stocks our strategists feel are poised to deliver positive returns are featured now in their top stock picks of the week. Welcome to today's top stock pick. I am Jeremy Mullen alongside Ben Reigns who will have his pick shortly.But first, we will be doing Zoom Communications, ticker symbol ZM. Now, this is the popular cloud-based video conferencing company that many of us used during the pandemic. We might not have great memories of that, but it sure helped the stock out, which went from $70 to $588 ...

Core Insights - Zoom Communications, Inc. has been recognized as a Leader in the 2025 Gartner Magic Quadrant for Unified Communications as a Service (UCaaS), marking its sixth consecutive inclusion in this category [1][3] - Zoom is one of only two companies that have placements in both the UCaaS and Contact Center as a Service (CCaaS) Magic Quadrants, highlighting its strong unified platform strategy [1][3] Company Strategy - The recognition underscores the effectiveness of Zoom's AI-first approach to communication and collaboration, with the AI Companion integrated across the Zoom Workplace platform to enhance user productivity and work quality [2][3] - Zoom's commitment to AI-first innovations is seen as a key factor in its ability to help users work faster and more effectively [3] Product Offering - Zoom Workplace is positioned as an open collaboration platform that empowers teams to be more productive, integrating both communication and contact center capabilities into a single user-friendly experience [3][8]

Group 1: Shopify - Shopify's platform gained significant traction during the pandemic as consumers shifted to online shopping, leading to continued popularity and growth [2] - The company's sales grew by 31% year-over-year in its latest period, achieving double-digit percentage YoY sales growth for ten consecutive periods [3] - The current Zacks Consensus EPS estimate for Shopify's fiscal year is $1.07, reflecting a 16% increase over the previous year [3] Group 2: Zoom Video Communications - Zoom's unified communications platform saw explosive sales growth during the pandemic, but has since leveled off significantly [5] - In its latest release, Zoom's sales grew nearly 5% year-over-year, with adjusted EPS of $1.53, a 10% increase from the previous year [6] - The current Zacks Consensus EPS estimate for Zoom's fiscal year is $3.60, indicating a nearly 40% increase over the last year [8] Group 3: Comparative Analysis - Shopify is recognized as the leader in performance and fundamentals post-pandemic, benefiting from the sustained trend of online shopping [9] - Zoom's shares have shown some recovery from lows, but the company requires a strong quarterly release to demonstrate meaningful sales growth [10]

Group 1 - The core viewpoint is that investing in companies with steady long-term growth and strong balance sheets is preferable, rather than focusing solely on low multiple stocks [1] - The performance of Zoom Communications Inc. (NASDAQ: ZM) in the core enterprise segment has been soft, leading to a recommendation to hold the stock due to muted overall growth [1] - There is a belief that while valuation is important, in certain situations where the growth potential is significant, the immediate price may be less critical [1]

Core Insights - Zoom Communications is evolving from a pandemic-focused video meeting platform to a diversified collaboration provider, offering solutions like Zoom Phone, Contact Center, Workvivo, and AI-driven Zoom Workplace [1] Financial Performance - In Q2 of fiscal 2026, Zoom reported revenue of $873.97 million from the Americas, a 4.6% year-over-year increase; EMEAC contributed $200 million, up 5.7%; and Asia Pacific generated $148.3 million, growing 4.2% [2] - The Zacks Consensus Estimates for Q3 fiscal 2026 revenues are $870.53 million for the Americas (up 3%), $194.32 million for EMEAC (up 4%), and $149 million for Asia Pacific (up 3.2%) [4] - Zoom shares have appreciated 2.4% year to date, while the Zacks Internet – Software industry and the Zacks Computer and Technology sector have increased 26.5% and 22.4%, respectively [6] Strategic Initiatives - Zoom is expanding its market reach through new distribution channels and strategic partnerships, including collaborations with AWS and PwC, to enhance enterprise penetration globally [3][8] - The company is focusing on AI-driven product enhancements, such as AI Companion 3.0, to resonate with multinational and hybrid workforces [3][8] Competitive Landscape - Competitors like Microsoft and Cisco are also expanding their global reach, with Microsoft leveraging its Office 365 ecosystem and Cisco investing in local data centers for Webex [5] - Zoom differentiates itself through AI-driven innovation and platform flexibility, which is crucial for building global momentum [5] Valuation Metrics - Zoom's stock is currently trading at a forward 12-month Price/Sales ratio of 5.14X, compared to the industry's 6.01X, indicating a relatively favorable valuation [10] - The Zacks Consensus Estimate for Q3 fiscal 2026 earnings is $1.42 per share, reflecting a year-over-year improvement of 2.9% [13]

Group 1 - Zoom Communications is identified as a classic value stock within the tech sector, experiencing an acceleration in top-line growth rates while management remains cautious due to the uncertain macroeconomic environment [1] - The company is being analyzed by Julian Lin, a financial analyst who focuses on finding undervalued companies with secular growth potential, emphasizing strong balance sheets and management teams [1] - The investment strategy combines growth-oriented principles with strict valuation hurdles to enhance the margin of safety for investors [1] Group 2 - The article highlights the exclusive features of Julian's investing group, which include access to high-conviction stock picks, comprehensive research reports, real-time trade alerts, and macro market analysis [1]

Core Viewpoint - The CEO of Zoom, Eric Yuan, predicts that AI chatbots and intelligent agents will facilitate a shift to a three to four-day workweek, aligning with views from other industry leaders like Bill Gates and Jensen Huang [2][4][5] Group 1: Impact of AI on Work Structure - AI technology is expected to eliminate certain jobs, but those who retain their positions may benefit from shorter workweeks [4][7] - Companies like Exos have successfully implemented a four-day workweek, resulting in a 50% reduction in employee burnout and a 24% increase in productivity [4] - Bill Gates anticipates that within the next decade, most jobs may no longer require human involvement due to the rapid advancement of AI [5][6] Group 2: Divergent Views on Job Market Transformation - There is a consensus among business leaders that the job market will undergo significant changes, with some positions inevitably being automated [7] - While some executives believe that AI will lead to job losses, others, like Jensen Huang, argue that it could actually promote employment by creating new opportunities for skilled workers [7] - Eric Yuan acknowledges that while some jobs will disappear, new roles will emerge, particularly in managing AI systems and digital agents [7]

Group 1 - Zoom Communications Inc. is recognized as one of the tech stocks with the lowest P/E ratios, maintaining a Buy rating with a price target of $100 [1] - The recent Zoomtopia conference highlighted the integration of agentic workflows and the introduction of AI Companion 3.0, a significant upgrade within Zoom Workplace [1] - The company is strengthening channel relationships both in the US and internationally, which is expected to drive enterprise revenue growth [2] Group 2 - The Zoom business has stabilized, with expectations of mid-single-digit total revenue growth for FY26, surpassing the current guidance of 3.5% [2] - Zoom Communications offers an AI-powered work platform called Zoom Workplace that enhances collaboration and communication [3]