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Zscaler (ZS) Dips More Than Broader Markets: What You Should Know
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Zscaler (ZS - Free Report) closed at $239.90 in the latest trading session, marking a -1.68% move from the prior day. This move lagged the S&P 500's daily loss of 0.63%. At the same time, the Dow lost 0.19%, and the tech-heavy Nasdaq lost 0.34%.
Heading into today, shares of the cloud-based information security provider had lost 1.55% over the past month, lagging the Computer and Technology sector's gain of 5.65% and the S&P 500's gain of 6.02% in that time.
Investors will be hoping for strength from Zscaler as it approaches its next earnings release. The company is expected to report EPS of $0.11, down 26.67% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $271.81 million, up 54.09% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.55 per share and revenue of $1.05 billion. These totals would mark changes of +5.77% and +55.89%, respectively, from last year.
Any recent changes to analyst estimates for Zscaler should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. 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. 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 remained stagnant within the past month. Zscaler is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that Zscaler has a Forward P/E ratio of 443.62 right now. Its industry sports an average Forward P/E of 23.23, so we one might conclude that Zscaler is trading at a premium comparatively.
Also, we should mention that ZS has a PEG ratio of 11.34. 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 2.85 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 201, which puts it in the bottom 21% 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.
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Zscaler (ZS) Dips More Than Broader Markets: What You Should Know
Zscaler (ZS - Free Report) closed at $239.90 in the latest trading session, marking a -1.68% move from the prior day. This move lagged the S&P 500's daily loss of 0.63%. At the same time, the Dow lost 0.19%, and the tech-heavy Nasdaq lost 0.34%.
Heading into today, shares of the cloud-based information security provider had lost 1.55% over the past month, lagging the Computer and Technology sector's gain of 5.65% and the S&P 500's gain of 6.02% in that time.
Investors will be hoping for strength from Zscaler as it approaches its next earnings release. The company is expected to report EPS of $0.11, down 26.67% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $271.81 million, up 54.09% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.55 per share and revenue of $1.05 billion. These totals would mark changes of +5.77% and +55.89%, respectively, from last year.
Any recent changes to analyst estimates for Zscaler should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. 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. 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 remained stagnant within the past month. Zscaler is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that Zscaler has a Forward P/E ratio of 443.62 right now. Its industry sports an average Forward P/E of 23.23, so we one might conclude that Zscaler is trading at a premium comparatively.
Also, we should mention that ZS has a PEG ratio of 11.34. 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 2.85 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 201, which puts it in the bottom 21% 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.