Company Overview - Zoom Communications (ZM) currently holds a Momentum Style Score of B, indicating a positive outlook based on its price changes and earnings estimate revisions [2] - The company has a Zacks Rank of 1 (Strong Buy), suggesting strong potential for outperformance in the market [3] Price Performance - Over the past week, ZM shares have increased by 2.78%, while the Zacks Internet - Software industry has decreased by 0.72% [5] - In a longer time frame, ZM's monthly price change is 21.94%, significantly outperforming the industry's 4.18% [5] - Over the last quarter, ZM shares have risen by 9.26%, and over the past year, they have increased by 27.77%, compared to the S&P 500's gains of 8.64% and 21.49% respectively [6] Trading Volume - ZM's average 20-day trading volume is 4,102,285 shares, which serves as a bullish indicator when combined with rising stock prices [7] Earnings Outlook - In the past two months, 9 earnings estimates for ZM have been revised upwards, while none have been lowered, leading to an increase in the consensus estimate from $5.59 to $5.77 [9] - For the next fiscal year, 8 estimates have also moved upwards with no downward revisions [9] Conclusion - Given the positive trends in price performance, trading volume, and earnings estimates, ZM is positioned as a strong momentum pick and should be considered for investment [11]

Core Insights - LG Electronics is enhancing its role in the Software-Defined Vehicle (SDV) era with its webOS-based Automotive Content Platform (ACP), aiming to transform vehicles into software-driven experience hubs [1][2][3] Group 1: Strategic Partnerships - At IAA MOBILITY 2025, LG announced partnerships with Xbox and Zoom to redefine the in-vehicle experience, focusing on entertainment and collaboration [2][6] - The integration of the Xbox app into LG ACP will allow passengers with an Xbox Game Pass Ultimate subscription to access a wide range of games via cloud gaming directly from the vehicle's infotainment system [4][5] - The addition of a native Zoom app will enable drivers and passengers to conduct meetings efficiently, turning vehicles into mobile collaboration spaces while ensuring safer driving [6][7] Group 2: Content and Services Expansion - LG aims to supply its webOS-based ACP to 20 million vehicles by 2030, continuously expanding its content and service ecosystem [3] - Passengers will have access to various streaming services, including Netflix, Disney+, and local Korean services, with plans to add more platforms by the end of the year [8] - LG ACP is a key component of PlayWare, delivering high-definition content experiences and expanding the concept of living spaces into vehicles [9] Group 3: User Experience and Technology - LG's webOS, which powers over 240 million smart TVs, will provide a seamless user experience in vehicles, allowing for content enjoyment across multiple displays while adhering to driving safety regulations [7][8] - The company is committed to transforming vehicles into "living spaces on wheels," enhancing the overall user experience through intelligent solutions and innovative technology [9][11]

Core Viewpoint - Sigma Corporation of America is launching the Sigma 20-200mm F3.5-6.3 DG | Contemporary lens, which is the world's first 10x zoom lens starting at an ultra-wide 20mm focal length, designed specifically for full-frame mirrorless cameras, available in late September 2025 [1][8]. Product Features - The Sigma 20-200mm lens is a compact all-in-one zoom lens that covers a focal range from ultra-wide 20mm to telephoto 200mm, weighing only 550 grams and measuring 115.5mm in length, making it ideal for travel photography [2][12]. - It achieves a maximum magnification ratio of 1:2 at focal lengths between 28mm and 85mm, allowing for versatile close-up photography [3][11]. - The lens features a high-speed autofocus system powered by Sigma's HLA (High-response Linear Actuator) motor, ensuring swift and accurate subject tracking [3][14]. Optical Design - The optical design includes four aspherical lenses, one FLD glass element, and three SLD glass elements, which work together to minimize aberrations and reduce flare and ghosting [4][17]. - The lens construction consists of 18 elements in 14 groups, providing a wide angle of view from 94.5° to 12.3° [21]. Availability and Pricing - The Sigma 20-200mm F3.5-6.3 DG | Contemporary lens will be available for a retail price of $999 USD at authorized Sigma dealers in the US, compatible with Sony E-mount and L-Mount [5][7]. Additional Features - The lens is designed with a dust- and splash-resistant structure and features a water- and oil-repellent coating, making it suitable for outdoor photography [15][16]. - It includes a zoom lock switch to prevent unintentional extension of the lens under its own weight [16].

Core Insights - Zoom Communications' employee experience platform Workvivo is expected to drive enterprise expansion, with a 142% year-over-year increase in customers contributing over $100,000 in Annual Recurring Revenue, reaching 168 in Q2 of fiscal 2026 [1][8] - The acquisition of Workvivo is set to enhance Zoom's presence in employee engagement and internal communications, as enterprises increasingly recognize the importance of integrated employee platforms for hybrid work and retention strategies [2] - Integration with Zoom Workplace is anticipated to facilitate cross-selling opportunities, increasing customer lifetime value, while expansion into mid-market accounts is expected to create new revenue streams [3] Financial Performance - The Zacks Consensus Estimate for enterprise revenues in Q3 of fiscal 2026 is projected at $730.97 million, reflecting a 4.6% increase from the previous year, with enterprise revenues constituting 60% of total revenues [4][8] - Zoom's shares have increased by 2.3% year to date, underperforming the Zacks Internet – Software industry's return of 18.3% and the Zacks Computer and Technology sector's increase of 11.8% [6] Competitive Landscape - Microsoft poses a significant challenge to Zoom with its Viva suite, which is integrated with Microsoft Teams and Office 365, enhancing adoption among enterprises already using Microsoft's ecosystem [5] - Alphabet is also expanding its collaboration and employee engagement offerings through Google Workspace, leveraging cloud and AI capabilities [5] - Zoom's opportunity lies in cross-selling through Workplace and differentiating itself as enterprises seek unified platforms outside of Microsoft and Alphabet's ecosystems [5] Valuation Metrics - Zoom's stock is currently trading at a forward 12-month Price/Sales ratio of 5.15X, compared to the industry's 5.62X, indicating a relative valuation position [10] - The Zacks Consensus Estimate for Q3 fiscal 2026 earnings is $1.42 per share, reflecting a year-over-year improvement of 2.9% [12]

Group 1: Shopify (SHOP) - 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 32% 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 [5] - Shopify is recognized as a leader in performance and fundamentals post-pandemic, benefiting from the sustained trend of online shopping [16] Group 2: Zoom Video Communications (ZM) - Zoom's unified communications platform gained popularity during the pandemic, but its growth has since stalled [8] - In its latest release, Zoom's sales grew nearly 5% year-over-year, with adjusted EPS of $1.53, marking a 10% increase [12] - Operating cash flow reached $516 million, up from $449.3 million in the same period last year, while free cash flow increased to $508 million from $365 million [12] - The current Zacks Consensus EPS estimate for Zoom's fiscal year is $3.53, indicating a nearly 40% increase over the previous year [13] - Zoom shares have been in a consolidation pattern for years, indicating a need for a strong quarterly release to demonstrate meaningful sales growth [17]

Core Insights - Zoom Communications, Inc. has been awarded the Engineering, Science & Technology Emmy® Award for its innovative Zoom for Broadcast technology, which significantly impacts television engineering and storytelling [1][4] - The award ceremony will take place on October 14 in Los Angeles, recognizing the contributions of Zoom's technology to the broadcasting industry [1] Group 1: Technology Impact - Zoom for Broadcast redefines remote media contribution, allowing high-quality video and audio integration from remote participants into live productions with minimal latency and maximum reliability [2][4] - The technology bridges videoconferencing and live production, enabling producers to create multi-participant content at a lower cost and complexity compared to traditional methods [4][5] - Major television networks and production companies globally have adopted Zoom for Broadcast for various live events, enhancing workflows and empowering diverse voices in storytelling [4][5] Group 2: Company Vision and Mission - The company aims to democratize storytelling by providing broadcast-grade tools to a wider audience, transforming how stories are told on television [3][5] - Zoom's mission is to create an AI-first work platform for human connection, enhancing productivity through its collaboration tools [7][8] - The technology supports seamless integration with industry-standard protocols and production tools, facilitating scalable conversations for live events [7]

Core Insights - The video collaboration and hybrid work market is rapidly evolving, with Zoom Communications and Microsoft emerging as key players [1][3] - The global video conferencing market is projected to grow from approximately $8.88 billion in 2024 to around $28.26 billion by 2034, reflecting a CAGR of about 12% [2] Zoom Communications - Zoom's video-first design offers superior quality and reliability, with Q2 fiscal 2026 revenue rising 4.7% year over year to $1.22 billion [4][10] - AI initiatives, such as AI Companion, are enhancing user experience and driving enterprise adoption, with monthly active users increasing over 4X year over year [5] - Zoom's integrated ecosystem, including Zoom Workplace and Contact Center, is contributing to competitive positioning, with significant growth in large deals and $100,000-plus ARR customers [6][10] - The Zacks Consensus Estimate for Zoom's fiscal 2026 earnings has been revised upward by 3.2% to $5.77 per share, indicating market optimism [7] Microsoft - Microsoft's Teams benefits from integration within Microsoft 365, with Commercial Cloud revenues rising 18% year over year to $33.1 billion in Q4 fiscal 2025 [8] - AI features in Microsoft 365, such as Copilot, enhance functionality but lack video-specific differentiation, which may limit Teams' competitive edge in video collaboration [9][11] - The Zacks Consensus Estimate for Microsoft's fiscal 2026 earnings is pegged at $15.35 per share, with a 1.9% upward revision, but market sentiment appears less optimistic compared to Zoom [12] Price Performance and Valuation - Year-to-date, Microsoft shares have gained 20.1%, while Zoom shares have decreased by 0.4%, positioning Zoom for potential upside [13] - Microsoft trades at a forward price-to-sales ratio of 11.92X, while Zoom trades at 5.02X, indicating a relative discount for Zoom and greater room for re-rating [16] - Both companies are considered overvalued, but Zoom's relative discount makes it a more attractive investment opportunity [19]

Core Viewpoint - Zoom Communications (ZM) shows a significant improvement in earnings outlook, making it an attractive investment option as analysts continue to raise earnings estimates [1][2] Earnings Estimate Revisions - Analysts' optimism regarding Zoom's earnings prospects is leading to higher estimates, which is expected to positively impact the stock price [2] - The current-quarter earnings estimate is $1.42 per share, reflecting a +2.9% change from the previous year, with a 6.52% increase in consensus estimates over the last 30 days due to seven upward revisions [7] - For the full year, the expected earnings are $5.77 per share, indicating a +4.2% year-over-year change, with nine estimates moving higher in the past month and a 9.4% increase in consensus estimates [8][9] Zacks Rank and Performance - Zoom has achieved a Zacks Rank 1 (Strong Buy) due to favorable estimate revisions, which historically correlate with strong stock performance [10] - Stocks with Zacks Rank 1 and 2 have shown significant outperformance compared to the S&P 500 [10] - The stock has gained 14.7% over the past four weeks, driven by solid estimate revisions and positive earnings growth prospects [11]

Core Insights - Zacks Premium provides various tools for investors to enhance their stock market strategies and confidence [1] - The Zacks Style Scores are designed to help investors select stocks with the highest potential to outperform the market in the short term [2] Zacks Style Scores Overview - Stocks are rated based on value, growth, and momentum characteristics, with scores ranging from A to F, where A indicates the highest potential for outperformance [3] - The Style Scores are categorized into four types: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [3][4][5][6] Value Score - The Value Score identifies attractive stocks based on valuation ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow, appealing to value investors [3] Growth Score - The Growth Score assesses stocks based on projected and historical earnings, sales, and cash flow, targeting growth investors [4] Momentum Score - The Momentum Score evaluates stocks based on price trends and earnings estimate changes, assisting momentum investors in timing their purchases [5] VGM Score - The VGM Score combines the three Style Scores to highlight stocks with the best overall value, growth, and momentum characteristics [6] Zacks Rank Integration - The Zacks Rank utilizes earnings estimate revisions to simplify portfolio building, with 1 (Strong Buy) stocks historically yielding an average annual return of +23.75% since 1988, significantly outperforming the S&P 500 [7][8] Stock Selection Strategy - To maximize returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B, while also considering earnings estimate trends [10][11] Company Spotlight: Zoom Video Communications - Zoom Video Communications is currently rated 2 (Buy) on the Zacks Rank, with a VGM Score of B, benefiting from increased demand for remote communication tools [12] - The company is projected to have year-over-year earnings growth of 1.1% for the current fiscal year, with an upward revision in earnings estimates [13]

Core Insights - The performance of Zoom Communications' international operations is critical for understanding its financial resilience and growth potential [1][2] - The company's total revenue for the quarter ending July 2025 was $1.22 billion, reflecting a 4.7% increase year-over-year [4] International Revenue Analysis - APAC contributed $148.34 million, or 12.2% of total revenue, showing a surprise increase of 1.51% compared to analyst expectations [5] - EMEA accounted for $194.92 million, or 16% of total revenue, with a surprise increase of 2.57% over expectations [6] Future Revenue Projections - Analysts forecast revenues of $1.21 billion for the current fiscal quarter, a 2.9% increase year-over-year, with expected contributions of 12.3% from APAC and 15.9% from EMEA [7] - For the entire year, total revenue is projected to be $4.8 billion, a 3% improvement from the previous year, with APAC and EMEA expected to contribute $586.61 million and $763.55 million, respectively [8] Market Dynamics - The reliance on international markets presents both opportunities and challenges for Zoom, necessitating close monitoring of revenue trends [9] - Analysts are increasingly focused on international revenue patterns due to the complexities of global interdependence and geopolitical issues [10] Stock Performance - Over the past month, Zoom's stock increased by 10.2%, outperforming the Zacks S&P 500 composite, which rose by 2.7% [13] - In the last three months, the stock price increased by 1.5%, while the S&P 500 index rose by 11% [13]