10 Best Low Beta Tech Stocks to Buy According to Analysts

Page 9 of 9

1. Zoom Communications Inc. (NASDAQ:ZM)

Beta: 0.25

Potential Upside: 24%

Number of Hedge Fund Holders: 48

Zoom Communications Inc. (NASDAQ:ZM) is a communications and collaboration technology company best known for its videoconferencing applications, Zoom and Zoom Workplace. Its video-first platform offers a range of communication tools, including video meetings, voice services, webinars, and chat, accessible across desktops, phones, mobile devices, and conference room systems.

On February 24, Zoom Communications Inc. (NASDAQ:ZM) reported steady Q4 2024 results (FY ending January), with revenue reaching $1.18 billion, reflecting 3.3% year-over-year growth. The company’s AI-powered solutions contributed to a 7.3% increase in the number of customers generating over $100,000 in trailing 12-month revenue. Earnings per share (EPS) came in at $1.41, surpassing the consensus estimate of $1.35. However, its guidance came in slightly softer than expected. For FY 2026, Zoom Communications Inc. (NASDAQ:ZM) projects total revenue in constant currency between $4.8 billion and $4.81 billion, while EPS is expected to be in the range of $5.34-$5.37, falling short of the street expectation of approximately $5.56.

Following the earnings release, analysts had mixed reactions, with many maintaining a cautious outlook. However, Wedbush analyst Daniel Ives reiterated his Buy rating on February 25, setting a price target of $95. The current consensus one-year median price target stands at $92, suggesting a potential upside of 24%.

While we acknowledge the potential of ZM to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ZM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

Disclosure. None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and investors. Please subscribe to our daily free newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.

Page 9 of 9