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Zscaler (ZS) Stock Sinks As Market Gains: What You Should Know
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In the latest trading session, Zscaler (ZS - Free Report) closed at $280.87, marking a -1.73% move from the previous day. This move lagged the S&P 500's daily gain of 0.09%. At the same time, the Dow lost 0.16%, and the tech-heavy Nasdaq gained 0.24%.
Coming into today, shares of the cloud-based information security provider had gained 10.27% in the past month. In that same time, the Computer and Technology sector lost 5.27%, while the S&P 500 lost 4.02%.
Wall Street will be looking for positivity from Zscaler as it approaches its next earnings report date. This is expected to be February 24, 2022. On that day, Zscaler is projected to report earnings of $0.11 per share, which would represent year-over-year growth of 10%. Our most recent consensus estimate is calling for quarterly revenue of $241.99 million, up 54.1% 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 +49.85%, respectively.
Investors should also note any recent changes to analyst estimates for Zscaler. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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, 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 0.77% higher within the past month. Zscaler is holding a Zacks Rank of #2 (Buy) right now.
Digging into valuation, Zscaler currently has a Forward P/E ratio of 553.2. This represents a premium compared to its industry's average Forward P/E of 26.32.
Investors should also note that ZS has a PEG ratio of 14.91 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Internet - Services stocks are, on average, holding a PEG ratio of 3.09 based on yesterday's closing prices.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 181, putting it in the bottom 29% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
View the Zacks #1 Rank List
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Zscaler (ZS) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Zscaler (ZS - Free Report) closed at $280.87, marking a -1.73% move from the previous day. This move lagged the S&P 500's daily gain of 0.09%. At the same time, the Dow lost 0.16%, and the tech-heavy Nasdaq gained 0.24%.
Coming into today, shares of the cloud-based information security provider had gained 10.27% in the past month. In that same time, the Computer and Technology sector lost 5.27%, while the S&P 500 lost 4.02%.
Wall Street will be looking for positivity from Zscaler as it approaches its next earnings report date. This is expected to be February 24, 2022. On that day, Zscaler is projected to report earnings of $0.11 per share, which would represent year-over-year growth of 10%. Our most recent consensus estimate is calling for quarterly revenue of $241.99 million, up 54.1% 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 +49.85%, respectively.
Investors should also note any recent changes to analyst estimates for Zscaler. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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, 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 0.77% higher within the past month. Zscaler is holding a Zacks Rank of #2 (Buy) right now.
Digging into valuation, Zscaler currently has a Forward P/E ratio of 553.2. This represents a premium compared to its industry's average Forward P/E of 26.32.
Investors should also note that ZS has a PEG ratio of 14.91 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Internet - Services stocks are, on average, holding a PEG ratio of 3.09 based on yesterday's closing prices.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 181, putting it in the bottom 29% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.