ZI

Based on the provided analysis, ZoomInfo (ZI) presents a mixed but promising investment case, primarily driven by its future growth potential rather than current performance.

The company demonstrates solid fundamental health with strong sequential revenue growth and a very high gross profit margin, indicating a powerful business model. Its profitability is also improving, though operational efficiency metrics like ROE are currently low. The most compelling aspect is the valuation; while traditional metrics like the trailing P/E appear expensive, the forward P/E and a PEG ratio significantly below 1.0 suggest the market is anticipating substantial future earnings growth that could justify the current price. However, investors should be mindful of the company's moderate leverage and potential liquidity constraints indicated by the low current ratio.

Recommendation: LEAN BUY

ZI appears to be a growth-oriented investment where the market is betting heavily on its future earnings expansion. The improving fundamentals and reasonable forward valuation, highlighted by the low PEG ratio, make a case for investment. This positive outlook is tempered by current operational inefficiencies and liquidity concerns, suggesting it may be more suitable for investors with a higher risk tolerance and a longer time horizon. As always, this is for reference only and not investment advice.

RockFlow Model Forecast: Three Scenarios for 2026

Based on the comprehensive analysis provided, the 12-month outlook for ZoomInfo (ZI) is cautiously optimistic, leaning towards a growth trajectory.

Key Catalysts: The primary catalyst is the anticipated acceleration in earnings growth that the market has already priced in, as evidenced by the low PEG ratio. Continued execution on sequential revenue growth and further improvement in profitability metrics will be critical to validating this growth story.

Potential Risks: The outlook is tempered by operational inefficiencies, such as the low ROE, and liquidity concerns indicated by the low current ratio. A failure to meet high growth expectations or a deterioration in the macroeconomic environment impacting its customers could expose the stock to significant downside.

Target Price Range: Given the lack of a specific analyst target, the price action will heavily depend on the company's ability to execute against its growth narrative. A reasonable target range would be contingent on it achieving the earnings growth implied by its forward valuation, but investors should monitor quarterly results closely for confirmation.

Wall Street Consensus

Most Wall Street analysts are optimistic about ZI's 12-month outlook, with consensus target around $0.00, indicating expected upside potential.

Overall, ZI has investment potential but also faces challenges. Here are key factors to weigh before investing.

Based on the limited data provided, ZI's performance cannot be meaningfully assessed as critical price and performance metrics are unavailable. The stock's beta of 1.023 indicates it is expected to experience volatility very close to that of the overall market.

Short-term performance analysis is impaired by the lack of 1-month, 3-month, and relative strength data. Without these fundamental metrics, no conclusions can be drawn regarding recent price action or its performance compared to a market benchmark.

The current trading position within its 52-week range cannot be determined without the current price, high, and low values. Consequently, it is impossible to evaluate whether the stock is in an overbought or oversold condition based on this data.

Revenue & Profitability ZI demonstrated sequential revenue growth from $306.7 million in Q2 to $318 million in Q3 2025. The company maintains a strong gross profit margin of approximately 84%, though its net income ratio improved significantly from 7.8% to 12.2% quarter-over-quarter, indicating better bottom-line conversion despite a high effective tax rate.

Financial Health The company's debt-to-equity ratio of 1.02 reflects moderate leverage, while the current ratio of 0.67 indicates potential liquidity constraints. Operating cash flow coverage appears adequate with a 5.9x interest coverage ratio, though the low cash ratio of 0.22 suggests limited immediate cash liquidity relative to current obligations.

Operational Efficiency ZI's return on equity of 2.5% and asset turnover of 0.05 indicate suboptimal efficiency in generating returns from shareholder equity and asset utilization. The cash conversion cycle of 12.8 days demonstrates reasonably efficient working capital management, but the low ROCE of 1.2% suggests room for improvement in capital allocation effectiveness.

Valuation Level: ZoomInfo exhibits mixed valuation signals with a notably high trailing P/E of 77.9 and elevated ratios for PS (11.1) and EV/EBITDA (61.0). However, the forward P/E of 22.7 and a PEG ratio significantly below 1 at 0.32 suggest the market is pricing in robust future earnings growth, which, if realized, could justify current multiples. The reasonable PB ratio of 2.3 indicates the stock is not excessively valued relative to its book value.

Peer Comparison: A peer comparison against industry averages cannot be conducted as the necessary industry data is unavailable. A meaningful assessment of whether ZoomInfo trades at a premium or discount to its sector peers therefore requires obtaining the relevant benchmark ratios for the software or data services industry.

Volatility Risk: ZI's beta of 1.023 indicates its price volatility is very closely aligned with the broader market, suggesting it possesses a systematic risk profile nearly identical to the market average. However, the absence of a maximum drawdown figure makes it impossible to assess the stock's resilience or the magnitude of its potential peak-to-trough losses during the provided period, representing a significant gap in volatility analysis.

Other Risks: The unavailability of short interest data prevents any assessment of market sentiment or the potential for a short squeeze, which is a critical oversight for risk evaluation. Similarly, the lack of liquidity metrics, such as average trading volume or bid-ask spreads, further obscures the stock's transaction ease and susceptibility to price impact from large trades.