Validea's Top Information Technology Stocks Based On Peter Lynch - 8/15/2025
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Aug 15 2025
0mins
Should l Buy ZM?
Source: NASDAQ.COM
Top Rated IT Stocks: The article highlights top-rated Information Technology stocks according to Validea's P/E/Growth Investor model, focusing on firms like First Solar Inc., Fortinet Inc., OSI Systems Inc., Hackett Group Inc., and Zoom Communications Inc., all of which have strong ratings based on their fundamentals and valuations.
Investment Strategy Insight: The analysis is based on the investment strategy of Peter Lynch, emphasizing the importance of reasonable pricing relative to earnings growth and strong balance sheets for selecting promising stocks.
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Analyst Views on ZM
Wall Street analysts forecast ZM stock price to rise
20 Analyst Rating
12 Buy
7 Hold
1 Sell
Moderate Buy
Current: 92.240
Low
85.00
Averages
99.33
High
115.00
Current: 92.240
Low
85.00
Averages
99.33
High
115.00
About ZM
Zoom Communications, Inc. provides an artificial intelligence (AI) work platform for human connection. Zoom Workplace, the Company’s AI-powered, open collaboration platform built for modern work, enables us to streamline communications, increase employee engagement, optimize in-person time, improve productivity, and offer customer choice with third-party apps and integrations. Zoom Workplace, powered by Zoom AI Companion, includes collaboration solutions like meetings, team chat, phone, scheduler, whiteboard, spaces, Workvivo, and more. Its communication products include Zoom Meetings, Zoom Phone, Zoom Team Chat, Zoom scheduler, and Zoom mail and calendar. Its productivity products include Zoom Docs, Zoom Whiteboard, Zoom Clips, and Zoom Tasks. Its space products include Zoom Rooms, Zoom Workspace Reservation, and Zoom Visitor Management. It serves various industries, including education, financial services, government, retail, manufacturing and healthcare.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Stagnant Revenue: The company's revenue for 2023 was $2.6 billion, projected to fall by 1% to $2.5 billion in 2024, with a 3% year-over-year decline in Q1 2025, indicating a lack of growth momentum in a highly competitive market.
- Intensifying Competition: With doctor's offices reopening, 71% of patients prefer in-person visits, putting Teladoc under pressure from both traditional healthcare services and other telemedicine platforms, further squeezing its market share.
- Lack of Profitability: Despite a negative net profit margin of 21% during the pandemic peak in 2021, Teladoc has yet to achieve profitability, currently at negative 8.8%, indicating that the company struggles to reverse its fortunes amid declining revenues.
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- Growth Drivers: Strength in Zoom Contact Center and sustained mid-teens growth in Zoom Phone, along with emerging monetization from Voice AI, are driving improving growth durability, which the analyst believes is not yet fully reflected in market expectations.
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- Stock Price Plunge: Teladoc Health's stock price plummeted from $263 in January 2021 to $21 by the end of 2023, marking a staggering 92% decline, which reflects a sharp decrease in market demand post-pandemic and a lack of investor confidence.
- Stagnant Revenue: The company's revenue for 2023 was $2.6 billion, projected to fall by 1% to $2.5 billion in 2024, with a 3% year-over-year decline in Q1 2025, indicating a lack of growth momentum in a highly competitive market.
- Intensifying Competition: With doctor's offices reopening, 71% of patients prefer in-person visits, putting Teladoc under pressure from both traditional healthcare services and other telemedicine platforms, further squeezing its market share.
- Lack of Profitability: Despite a negative net profit margin of 21% during the pandemic peak in 2021, Teladoc has yet to achieve profitability, currently at negative 8.8%, indicating that the company struggles to reverse its fortunes amid declining revenues.
See More
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- Palantir's Positive Outlook: Palantir's fourth-quarter results exceeded expectations, and the company provided first-quarter sales guidance above estimates, along with FY26 guidance that also surpassed analyst forecasts, highlighting its future growth potential.
- Kinsale Capital's Optimistic Forecast: Kinsale Capital shares rose 0.4% to close at $410.44 on Thursday, with analyst Hristian Getsov initiating coverage with an Overweight rating and a $490 price target, reflecting market confidence in its future performance.
- Merck's Drug Approval: Merck's ENFLONSIA received approval from Health Canada for preventing RSV lower respiratory tract disease in newborns and infants, with shares gaining 1.2% to close at $119.75, showcasing the company's ongoing innovation in the healthcare sector.
See More
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- Growth Drivers: Strength in Zoom Contact Center and sustained mid-teens growth in Zoom Phone, along with emerging monetization from Voice AI, are driving improving growth durability, which the analyst believes is not yet fully reflected in market expectations.
- Strong Financial Position: Zoom holds approximately $8 billion in net cash and is expected to add another $3.9 billion over the next two years, providing ample financial resources for growth-accretive M&A in adjacent areas like Voice AI and Contact Center software.
- Attractive Valuation: Currently trading at less than 10 times its free cash flow for the 2027 fiscal year, Zoom offers a significant discount compared to other non-security, cash-generative software peers, presenting a favorable risk/reward opportunity for investors.
See More
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- Goldman Sachs Reiterates Nvidia: Goldman Sachs maintains a Buy rating on Nvidia ahead of its earnings report, expecting investors to focus on visibility into 2027, non-traditional customer demand, and trends in the Chinese market, indicating strong market confidence in Nvidia's future growth.
- Benchmark Initiates Cava Rating: Benchmark initiates coverage of CAVA Group with a Buy rating and an $80 price target, reflecting its leadership position in the rapidly emerging Mediterranean dining market, which is expected to attract more investor interest in this burgeoning sector.
- BMO Capital Upgrades Brookfield: BMO upgrades Brookfield Asset Management from Market Perform to Outperform, citing attractive mid-teens distributable earnings growth prospects underpinned by continued fundraising momentum and fee rate resilience, showcasing the company's robust financial health.
- Bank of America Downgrades Qualcomm: Bank of America downgrades Qualcomm from Buy to Neutral, lowering the price target from $215 to $155 due to concerns over cyclical and structural weaknesses in the handset market, which may adversely affect its future performance.
See More
Figma's Stock Plummets 80% Post-IPO: An Analysis
- Significant Customer Growth: Figma reported 1,262 customers with annual revenues exceeding $100,000 as of September 30, marking a year-over-year increase of 385, indicating a sustained market penetration in the design sector that enhances long-term growth potential.
- Strong Financial Performance: The latest quarter saw Figma's revenue rise 38% year-over-year to $274.2 million, with an annual revenue run rate surpassing $1 billion for the first time; despite an operating loss of $1.1 billion primarily due to one-time stock compensation, this reflects the company's strategic focus on heavy reinvestment.
- High Market Valuation: Currently trading at nearly 70 times projected earnings, Figma's valuation remains elevated compared to Nvidia's 25 and Amazon's 29, suggesting that despite an 80% drop from its peak, careful evaluation of future profitability and competitive positioning is essential.
- Strong Product Competitiveness: Figma's platform effectively bridges designers and developers, with 30% of high-value customers using its AI tool Figma Make weekly, underscoring the product's significance in the industry and customer retention, which may further enhance market share in the future.
See More
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- Market Shift Warning: Matthew Tuttle, CEO of Tuttle Capital Management, warns that investors may be underestimating the shift away from U.S. assets, particularly large tech firms, as Europe and other regions reduce dependence on American platforms and policies.
- Digital Sovereignty Push: Tuttle highlights a significant move towards digital sovereignty in Europe, ensuring that core systems and communications cannot be easily disabled if relations with the U.S. deteriorate, which will impact future technology procurement and investment decisions.
- Beneficiary Companies: He identifies several European companies, including OVH Groupe, IONOS, Orange, Deutsche Telekom, and Capgemini, that could benefit from this shift, indicating a market tilt towards local technology solutions.
- Strained U.S.-EU Relations: Relations between the U.S. and EU have further strained after President Trump threatened tariffs on the EU for not supporting his Greenland acquisition bid, which may intensify scrutiny on U.S. tech companies and affect investor confidence.
See More
