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Zscaler (ZS) Gains As Market Dips: What You Should Know
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In the latest trading session, Zscaler (ZS - Free Report) closed at $111.90, marking a +0.03% move from the previous day. This move outpaced the S&P 500's daily loss of 0.25%. Meanwhile, the Dow lost 0.22%, and the Nasdaq, a tech-heavy index, added 5.91%.
Coming into today, shares of the cloud-based information security provider had lost 22.58% in the past month. In that same time, the Computer and Technology sector lost 3.63%, while the S&P 500 lost 2.59%.
Investors will be hoping for strength from Zscaler as it approaches its next earnings release. In that report, analysts expect Zscaler to post earnings of $0.29 per share. This would mark year-over-year growth of 123.08%. Our most recent consensus estimate is calling for quarterly revenue of $365.5 million, up 43.02% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.23 per share and revenue of $1.53 billion, which would represent changes of +78.26% and +40.22%, respectively, from the prior year.
Any recent changes to analyst estimates for Zscaler should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 16.23% higher. Zscaler is currently a Zacks Rank #2 (Buy).
Valuation is also important, so investors should note that Zscaler has a Forward P/E ratio of 90.64 right now. For comparison, its industry has an average Forward P/E of 19.74, which means Zscaler is trading at a premium to the group.
Investors should also note that ZS has a PEG ratio of 1.95 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Services was holding an average PEG ratio of 1.68 at yesterday's closing price.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 137, putting it in the bottom 46% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Zscaler (ZS) Gains As Market Dips: What You Should Know
In the latest trading session, Zscaler (ZS - Free Report) closed at $111.90, marking a +0.03% move from the previous day. This move outpaced the S&P 500's daily loss of 0.25%. Meanwhile, the Dow lost 0.22%, and the Nasdaq, a tech-heavy index, added 5.91%.
Coming into today, shares of the cloud-based information security provider had lost 22.58% in the past month. In that same time, the Computer and Technology sector lost 3.63%, while the S&P 500 lost 2.59%.
Investors will be hoping for strength from Zscaler as it approaches its next earnings release. In that report, analysts expect Zscaler to post earnings of $0.29 per share. This would mark year-over-year growth of 123.08%. Our most recent consensus estimate is calling for quarterly revenue of $365.5 million, up 43.02% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.23 per share and revenue of $1.53 billion, which would represent changes of +78.26% and +40.22%, respectively, from the prior year.
Any recent changes to analyst estimates for Zscaler should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 16.23% higher. Zscaler is currently a Zacks Rank #2 (Buy).
Valuation is also important, so investors should note that Zscaler has a Forward P/E ratio of 90.64 right now. For comparison, its industry has an average Forward P/E of 19.74, which means Zscaler is trading at a premium to the group.
Investors should also note that ZS has a PEG ratio of 1.95 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Services was holding an average PEG ratio of 1.68 at yesterday's closing price.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 137, putting it in the bottom 46% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.