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published in Blogs
Jul 01, 2019
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Zoom (ZM, $86.60) stock downgraded albeit with a price target raise by Goldman Sachs

Zoom (ZM, $86.60) stock downgraded albeit with a price target raise by Goldman Sachs

Zoom Video shares fell more than -3% Monday, following a rating downgrade by Goldman Sachs analysts.

Goldman analyst Heather Bellini downgraded Zoom Video shares to sell from neutral. According to Bellini, market expectations on Zoom “have gotten ahead of themselves” vis-a-vis its valuation.

However, the analyst increased her 12-month price target on the stock to $66 from $53. That’s because she maintains her “blue sky” scenario outlook on Zoom, expecting the company to surpass Wall Street consensus revenue estimates  for 2020.

Related Ticker: ZM

Contributor

Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.


ZM in upward trend: price may jump up because it broke its lower Bollinger Band on November 02, 2026

ZM may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In 29 of 36 cases where ZM's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are 81%.

Price Prediction Chart

Technical Analysis (Indicators)

Bullish Trend Analysis

The Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 1 day, which means it's wise to expect a price bounce in the near future.

The 10-day moving average for ZM crossed bullishly above the 50-day moving average on October 21, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 8 of 19 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 42%.

Following a +0.43% 3-day Advance, the price is estimated to grow further. Considering data from situations where ZM advanced for three days, in 187 of 291 cases, the price rose further within the following month. The odds of a continued upward trend are 64%.

The Aroon Indicator entered an Uptrend today. In 117 of 186 cases where ZM Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 63%.

Bearish Trend Analysis

The Momentum Indicator moved below the 0 level on November 02, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on ZM as a result. In 68 of 88 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 77%.

The Moving Average Convergence Divergence Histogram (MACD) for ZM turned negative on November 02, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 40 similar instances when the indicator turned negative. In 30 of the 40 cases the stock turned lower in the days that followed. This puts the odds of success at 75%.

ZM moved below its 50-day moving average on October 30, 2026 date and that indicates a change from an upward trend to a downward trend.

Following a 3-day decline, the stock is projected to fall further. Considering past instances where ZM declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 76%.

Fundamental Analysis (Ratings)

The Tickeron SMR rating for this company is 31 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.

The Tickeron Price Growth Rating for this company is 59 (best 1 - 100 worst), indicating steady price growth. ZM’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.

The Tickeron Valuation Rating of 68 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (2.371) is normal, around the industry mean (-1.902). P/E Ratio (8.349) is within average values for comparable stocks, (15.583). Projected Growth (PEG Ratio) (2.393) is also within normal values, averaging (2.824). Dividend Yield (0.000) settles around the average of (0.072) among similar stocks. P/S Ratio (5.562) is also within normal values, averaging (70.854).

The Tickeron PE Growth Rating for this company is 94 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.

The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. ZM’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 94, placing this stock worse than average.

Notable companies

The most notable companies in this group are Shopify Inc (NASDAQ:SHOP), Salesforce (NYSE:CRM), Uber Technologies (NYSE:UBER), ServiceNow Inc. (NYSE:NOW), Adobe (NASDAQ:ADBE), Intuit (NASDAQ:INTU), Datadog (NASDAQ:DDOG), Autodesk (NASDAQ:ADSK), Atlassian Corp (NASDAQ:TEAM), Workday (NASDAQ:WDAY).

Industry description

Packaged software comprises multiple software programs bundled together and sold as a group. For example, Microsoft Office includes multiple applications such as Excel, Word, and PowerPoint. In some cases, buying a bundled product is cheaper than purchasing each item individually[s20] . Microsoft Corporation, Oracle Corp. and Adobe are some major American packaged software makers.

Market Cap

The average market capitalization across the Packaged Software Industry is 10.44B. The market cap for tickers in the group ranges from 39 to 265.82B. SAP holds the highest valuation in this group at 265.82B. The lowest valued company is STIXF at 39.

High and low price notable news

The average weekly price growth across all stocks in the Packaged Software Industry was -2%. For the same Industry, the average monthly price growth was -4%, and the average quarterly price growth was -3%. FTFT experienced the highest price growth at 101%, while RCT experienced the biggest fall at -51%.

Volume

The average weekly volume growth across all stocks in the Packaged Software Industry was 19%. For the same stocks of the Industry, the average monthly volume growth was 9% and the average quarterly volume growth was -49%

Fundamental Analysis Ratings

The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows

Valuation Rating: 51
P/E Growth Rating: 59
Price Growth Rating: 59
SMR Rating: 77
Profit Risk Rating: 93
Seasonality Score: 11 (-100 ... +100)
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published General Information

General Information

a developer of video-first communications platform and application

Industry PackagedSoftware

Industry
Packaged Software
Address
55 Almaden Boulevard
Phone
+1 888 799-9666
Employees
7438
Web
https://www.zoom.com
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Zoom (ZM, $86.60) stock downgraded albeit with a price target raise by Goldman Sachs