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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 $239.04, marking a +1.33% move from the previous day. This move outpaced the S&P 500's daily loss of 0.18%.

Coming into today, shares of the cloud-based information security provider had gained 9.84% in the past month. In that same time, the Computer and Technology sector gained 3.16%, while the S&P 500 gained 2.44%.

ZS will be looking to display strength as it nears its next earnings release. On that day, ZS is projected to report earnings of $0.09 per share, which would represent year-over-year growth of 80%. Meanwhile, our latest consensus estimate is calling for revenue of $187.84 million, up 49.21% from the prior-year quarter.

Investors might also notice recent changes to analyst estimates for ZS. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.05% higher. ZS is currently a Zacks Rank #2 (Buy).

Investors should also note ZS's current valuation metrics, including its Forward P/E ratio of 497.23. This valuation marks a premium compared to its industry's average Forward P/E of 27.34.

We can also see that ZS currently has a PEG ratio of 9.82. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ZS's industry had an average PEG ratio of 3.22 as of yesterday's close.

The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 184, putting it in the bottom 28% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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