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Zscaler (ZS - Free Report) is a Zacks Rank #1 (Strong Buy) and it sports a F for Value and a B for Growth. That sort of growth divergence excites me. I know right away I am on the right path as I focused more on growth than value. I love to see a strong growth score and a weak value score. Let’s explore more about this company in this Bull of The Day article.
Description
Zscaler, Inc. operates as a cloud security company worldwide. It offers Zscaler Internet Access solution that provides users, workloads, IoT, and OT devices secure access to externally managed applications, including software-as-a-service (SaaS) applications and internet destinations; and Zscaler Private Access solution, which is designed to provide access to managed applications hosted internally in data centers, and private or public clouds. Zscaler, Inc. was incorporated in 2007 and is headquartered in San Jose, California..
Earnings History
When I look at a stock, the first thing I do is look to see if the company is beating the number. This tells me right away where the market’s expectations have been for the company and how management has communicated to the market. A stock that consistently beats has management communicating expectations to Wall Street that can be achieved. That is what you want to see.
For ZS, I see four straight beats of the Zacks Consensus Estimate. That is great to see, but by itself that is not enough to make the company a Zacks Rank #1 (Strong Buy).
The average positive earnings surprise over the course of the last year works out to be 26%.
Earnings Estimates Revisions
The Zacks Rank tells us which stocks are seeing earnings estimates move higher.
Over the last 60 days, earning estimates have moved up for ZS.
This quarter has moved from $0.19 to $0.26.
Next quarter has increased by a nickel to $0.26.
The full fiscal year 2022 has increased from $1.03 to $1.18.
Next fiscal year has seen the estimate move from $1.60 to $1.67.
Positive movement in earnings stock is a Zacks Rank #1 (Strong Buy).
Valuation
The valuation for this name is stretched. I see the forward earnings multiple works out to be 127x and that is very high. Top line growth of 61% is great to see, but that number needs to move a lot higher to justify the high PE. Price to book comes in a 37x which is super high even though this is an asset slim business.
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Bull Of The Day: Zscaler (ZS)
Zscaler (ZS - Free Report) is a Zacks Rank #1 (Strong Buy) and it sports a F for Value and a B for Growth. That sort of growth divergence excites me. I know right away I am on the right path as I focused more on growth than value. I love to see a strong growth score and a weak value score. Let’s explore more about this company in this Bull of The Day article.
Description
Zscaler, Inc. operates as a cloud security company worldwide. It offers Zscaler Internet Access solution that provides users, workloads, IoT, and OT devices secure access to externally managed applications, including software-as-a-service (SaaS) applications and internet destinations; and Zscaler Private Access solution, which is designed to provide access to managed applications hosted internally in data centers, and private or public clouds. Zscaler, Inc. was incorporated in 2007 and is headquartered in San Jose, California..
Earnings History
When I look at a stock, the first thing I do is look to see if the company is beating the number. This tells me right away where the market’s expectations have been for the company and how management has communicated to the market. A stock that consistently beats has management communicating expectations to Wall Street that can be achieved. That is what you want to see.
For ZS, I see four straight beats of the Zacks Consensus Estimate. That is great to see, but by itself that is not enough to make the company a Zacks Rank #1 (Strong Buy).
The average positive earnings surprise over the course of the last year works out to be 26%.
Earnings Estimates Revisions
The Zacks Rank tells us which stocks are seeing earnings estimates move higher.
Over the last 60 days, earning estimates have moved up for ZS.
This quarter has moved from $0.19 to $0.26.
Next quarter has increased by a nickel to $0.26.
The full fiscal year 2022 has increased from $1.03 to $1.18.
Next fiscal year has seen the estimate move from $1.60 to $1.67.
Positive movement in earnings stock is a Zacks Rank #1 (Strong Buy).
Valuation
The valuation for this name is stretched. I see the forward earnings multiple works out to be 127x and that is very high. Top line growth of 61% is great to see, but that number needs to move a lot higher to justify the high PE. Price to book comes in a 37x which is super high even though this is an asset slim business.