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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 $67.61, marking a +1.88% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.16%. Meanwhile, the Dow gained 0.01%, and the Nasdaq, a tech-heavy index, lost 0.26%.

Heading into today, shares of the cloud-based information security provider had gained 2.19% over the past month, outpacing the Computer and Technology sector's loss of 0.03% and the S&P 500's loss of 0.19% in that time.

Wall Street will be looking for positivity from ZS as it approaches its next earnings report date. This is expected to be May 30, 2019. In that report, analysts expect ZS to post earnings of $0.06 per share. This would mark year-over-year growth of 400%. Our most recent consensus estimate is calling for quarterly revenue of $74.54 million, up 51.63% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.12 per share and revenue of $290.32 million. These totals would mark changes of +192.31% and +52.66%, respectively, from last year.

Any recent changes to analyst estimates for ZS should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

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 remained stagnant. ZS is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, ZS is holding a Forward P/E ratio of 545.42. For comparison, its industry has an average Forward P/E of 34.33, which means ZS is trading at a premium to the group.

The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 182, putting it in the bottom 29% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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