Value
6.4/10data confidence 100%| Component | Sub-score |
|---|---|
| P/E | 8.5 |
| P/S | 6.9 |
| EV/EBITDA | 4.3 |
| Fwd P/E | 8.5 |
| PEG | 3.0 |
| Analyst target | 7.5 |
- ▸Forward P/E: 13.4x
- ▸PEG: 4.21
ZM · Why this verdict
Why Zoom Communications (ZM) is rated BUY WAIT
Updated
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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VerdictBUY WAIT
Overall score6.2/10
ConfidenceMEDIUM
MacroNEUTRAL
Per-dimension breakdown
Quality
8.2/10data confidence 100%| Component | Sub-score |
|---|---|
| ROE | 7.3 |
| ROA | 4.4 |
| Gross margin | 10.0 |
| Op margin | 10.0 |
| Net margin | 10.0 |
| Current ratio | 8.8 |
| FCF quality | 6.8 |
| Moat | 7.6 |
| Rule of 40 | 7.7 |
| Piotroski F | 8.9 |
- ▸Strong margins: 42%
- ▸Wide economic moat
- ▸Compounder quality: strong returns + growth
- ▸Rule of 40: 46 (pass)
Growth
7.0/10data confidence 67%| Component | Sub-score |
|---|---|
| Rev growth | 3.9 |
| EPS growth | 10.0 |
Momentum
1.7/10data confidence 100%| Component | Sub-score |
|---|---|
| RSI | 3.0 |
| MACD | 0.0 |
| OBV | 1.0 |
| MA position | 2.2 |
| Volume | 2.3 |
- ▸Capitulation risk (RSI 12, below 200MA)
- ▸Volume distribution (falling OBV)
- ▸Below 200-MA but MA still rising (+4.1%/30d) — pullback in uptrend, not confirmed weakness
Sentiment
8.2/10data confidence 100%| Component | Sub-score |
|---|---|
| LLM sentiment | 8.5 |
| Analyst rating | 7.5 |
| Price target | 8.8 |
- ▸LLM news sentiment: +0.70 (n=1)
- ▸Analyst upside: 33%
Insider
3.9/10data confidence 75%| Component | Sub-score |
|---|---|
| materiality | 4.5 |
| insider conviction | 2.0 |
| holder change | 5.1 |
- ▸Modest insider selling — $16,528,784 (0.067% of mkt cap)
Peer rank
6.0/10data confidence 80%| Component | Sub-score |
|---|---|
| value rank | 5.9 |
| quality rank | 8.4 |
| growth rank | 1.1 |
- ▸Attractive P/E vs peers
- ▸Best-in-class margins
Technical
7.5/10data confidence 100%| Component | Sub-score |
|---|---|
| bollinger | 8.4 |
| support resistance | 8.9 |
| 52w position | 5.1 |
Risk (lower is worse)
5.5/10data confidence 100%| Component | Sub-score |
|---|---|
| short interest | 8.9 |
| days to cover | 10.0 |
| volatility | 0.3 |
| put call | 0.0 |
| implied vol | 4.9 |
| beta | 7.0 |
| debt equity | 7.4 |
- ▸Elevated put/call: 2.06
Catalyst
6.3/10data confidence 100%| Component | Sub-score |
|---|---|
| erm | 5.0 |
| earnings history | 6.7 |
| earnings timing | 5.0 |
| surprise avg | 10.0 |
| news activity | 5.0 |
- ▸Strong earnings: 3B/1M
How the verdict was assembled
Engine trigger
Wide-moat business. Accumulate on weakness.
Engine technical detail
verdict_path:
L4:PATH_E_WIDE_MOAT|ENTRY_STICKY:PRIOR_STILL_VIABLEPassed (5)
- ASYMMETRY:2.0>=1.5
- INSIDER:OK
- EARNINGS_PROXIMITY:58d clear
- SEMI_CYCLE_PEAK:CLEAR
- MATERIALS_CYCLE_PEAK:CLEAR
Failed (1)
- MOMENTUM:1.7<4.5
Warning (1)
- 8K_CSUITE_CHANGE:5.02 (officer departure/appointment)
Reward-to-Risk
2.02
Upside
+19.7%
Downside
9.8%
Sizing output
STARTER
SetupUNKNOWN — No clear chart pattern; technical signals are mixed
EdgeTEMP_HEADWIND — High quality (8.2) with weak momentum (1.7)
SuitabilityMODERATE — Balanced profile
Investment implication
The STRONG_BUY_WAIT verdict reflects the MOMENTUM gate's 1.7<4.5 outcome against Quality at 8.2 and asymmetric R:R of 2.02.
The strongest dimensions are Quality at 8.2, Sentiment at 8.2, and Technical at 7.5; the weakest are Momentum at 1.7, Insider at 3.9, and Risk (lower is worse) at 5.5. The V9 engine flagged 1 failed gate with 1 warning, producing an asymmetric reward-to-risk of 2.02 and an engine sizing output of STARTER.