In the latest trading session, Zscaler (ZS - Free Report) closed at $143.34, marking a +1.57% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.22%. Meanwhile, the Dow lost 0.78%, and the Nasdaq, a tech-heavy index, added 0.68%.
Heading into today, shares of the cloud-based information security provider had gained 9.16% over the past month, lagging the Computer and Technology sector's gain of 13.31% and outpacing the S&P 500's gain of 9.15% in that time.
Investors will be hoping for strength from ZS as it approaches its next earnings release, which is expected to be September 9, 2020. The company is expected to report EPS of $0.03, down 57.14% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $118.41 million, up 37.51% from the year-ago period.
It is also important to note the recent changes to analyst estimates for ZS. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 1.18% higher. ZS is holding a Zacks Rank of #2 (Buy) right now.
Investors should also note ZS's current valuation metrics, including its Forward P/E ratio of 492.31. Its industry sports an average Forward P/E of 39.31, so we one might conclude that ZS is trading at a premium comparatively.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 119, which puts it in the top 47% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.