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Zscaler (ZS) Stock Moves -0.96%: What You Should Know

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In the latest trading session, Zscaler (ZS - Free Report) closed at $250.67, marking a -0.96% move from the previous day. This change was narrower than the S&P 500's 1.1% loss on the day. Meanwhile, the Dow lost 0.89%, and the Nasdaq, a tech-heavy index, added 0.03%.

Prior to today's trading, shares of the cloud-based information security provider had lost 21.4% over the past month. This has lagged the Computer and Technology sector's loss of 5.94% and the S&P 500's loss of 1.81% in that time.

Wall Street will be looking for positivity from Zscaler as it approaches its next earnings report date. The company is expected to report EPS of $0.12, up 20% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $239.66 million, up 52.61% from the year-ago period.

ZS's full-year Zacks Consensus Estimates are calling for earnings of $0.52 per share and revenue of $1.01 billion. These results would represent year-over-year changes of 0% and +49.7%, respectively.

Investors should also note any recent changes to analyst estimates for Zscaler. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate has moved 0.02% lower within the past month. Zscaler is holding a Zacks Rank of #4 (Sell) right now.

Looking at its valuation, Zscaler is holding a Forward P/E ratio of 490.8. This represents a premium compared to its industry's average Forward P/E of 23.8.

Investors should also note that ZS has a PEG ratio of 13.23 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ZS's industry had an average PEG ratio of 2.7 as of yesterday's close.

The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 178, which puts it in the bottom 31% 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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