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Zscaler (ZS) Stock Sinks As Market Gains: What You Should Know
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Zscaler (ZS - Free Report) closed at $204.76 in the latest trading session, marking a -1.23% move from the prior day. This move lagged the S&P 500's daily gain of 0.21%. Meanwhile, the Dow gained 0.19%, and the Nasdaq, a tech-heavy index, added 0.02%.
Coming into today, shares of the cloud-based information security provider had lost 15.03% in the past month. In that same time, the Computer and Technology sector lost 13.55%, while the S&P 500 lost 8.08%.
Investors will be hoping for strength from Zscaler as it approaches its next earnings release. On that day, Zscaler is projected to report earnings of $0.11 per share, which would represent a year-over-year decline of 26.67%. 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.
Investors should also note any recent changes to analyst estimates for Zscaler. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate has moved 0.05% higher within the past month. Zscaler is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Zscaler currently has a Forward P/E ratio of 376.17. This valuation marks a premium compared to its industry's average Forward P/E of 19.71.
Also, we should mention that ZS has a PEG ratio of 9.62. 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 2.03 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 98, putting it in the top 39% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
View the Zacks #1 Rank List
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Zscaler (ZS) Stock Sinks As Market Gains: What You Should Know
Zscaler (ZS - Free Report) closed at $204.76 in the latest trading session, marking a -1.23% move from the prior day. This move lagged the S&P 500's daily gain of 0.21%. Meanwhile, the Dow gained 0.19%, and the Nasdaq, a tech-heavy index, added 0.02%.
Coming into today, shares of the cloud-based information security provider had lost 15.03% in the past month. In that same time, the Computer and Technology sector lost 13.55%, while the S&P 500 lost 8.08%.
Investors will be hoping for strength from Zscaler as it approaches its next earnings release. On that day, Zscaler is projected to report earnings of $0.11 per share, which would represent a year-over-year decline of 26.67%. 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.
Investors should also note any recent changes to analyst estimates for Zscaler. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate has moved 0.05% higher within the past month. Zscaler is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Zscaler currently has a Forward P/E ratio of 376.17. This valuation marks a premium compared to its industry's average Forward P/E of 19.71.
Also, we should mention that ZS has a PEG ratio of 9.62. 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 2.03 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 98, putting it in the top 39% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.