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Zscaler (ZS) Dips More Than Broader Markets: What You Should Know
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Zscaler (ZS - Free Report) closed the most recent trading day at $223.08, moving -1.66% from the previous trading session. This move lagged the S&P 500's daily loss of 0.54%. At the same time, the Dow lost 0.02%, and the tech-heavy Nasdaq lost 0.12%.
Coming into today, shares of the cloud-based information security provider had lost 29.81% in the past month. In that same time, the Computer and Technology sector lost 13.86%, while the S&P 500 lost 7.87%.
Wall Street will be looking for positivity from Zscaler as it approaches its next earnings report date. In that report, analysts expect Zscaler to post earnings of $0.11 per share. This would mark year-over-year growth of 10%. Meanwhile, our latest consensus estimate is calling for revenue of $241.99 million, up 54.1% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.52 per share and revenue of $1.01 billion. These totals would mark changes of 0% and +49.85%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Zscaler. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.77% higher. Zscaler is currently a Zacks Rank #4 (Sell).
Investors should also note Zscaler's current valuation metrics, including its Forward P/E ratio of 439.07. For comparison, its industry has an average Forward P/E of 24.75, which means Zscaler is trading at a premium to the group.
Investors should also note that ZS has a PEG ratio of 11.83 right now. 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. The Internet - Services industry currently had an average PEG ratio of 2.24 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 208, putting it in the bottom 19% 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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Zscaler (ZS) Dips More Than Broader Markets: What You Should Know
Zscaler (ZS - Free Report) closed the most recent trading day at $223.08, moving -1.66% from the previous trading session. This move lagged the S&P 500's daily loss of 0.54%. At the same time, the Dow lost 0.02%, and the tech-heavy Nasdaq lost 0.12%.
Coming into today, shares of the cloud-based information security provider had lost 29.81% in the past month. In that same time, the Computer and Technology sector lost 13.86%, while the S&P 500 lost 7.87%.
Wall Street will be looking for positivity from Zscaler as it approaches its next earnings report date. In that report, analysts expect Zscaler to post earnings of $0.11 per share. This would mark year-over-year growth of 10%. Meanwhile, our latest consensus estimate is calling for revenue of $241.99 million, up 54.1% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.52 per share and revenue of $1.01 billion. These totals would mark changes of 0% and +49.85%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Zscaler. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.77% higher. Zscaler is currently a Zacks Rank #4 (Sell).
Investors should also note Zscaler's current valuation metrics, including its Forward P/E ratio of 439.07. For comparison, its industry has an average Forward P/E of 24.75, which means Zscaler is trading at a premium to the group.
Investors should also note that ZS has a PEG ratio of 11.83 right now. 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. The Internet - Services industry currently had an average PEG ratio of 2.24 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 208, putting it in the bottom 19% 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.