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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 $204.70, marking a -1.7% move from the previous day. This change lagged the S&P 500's 0.48% gain on the day. Elsewhere, the Dow gained 0.2%, while the tech-heavy Nasdaq lost 0.01%.
Heading into today, shares of the cloud-based information security provider had lost 17.41% over the past month, lagging the Computer and Technology sector's loss of 11.75% and the S&P 500's loss of 8.48% in that time.
Investors will be hoping for strength from Zscaler as it approaches its next earnings release. In that report, analysts expect Zscaler to post earnings of $0.11 per share. This would mark a year-over-year decline of 26.67%. Meanwhile, our latest consensus estimate is calling for revenue of $271.81 million, up 54.09% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.55 per share and revenue of $1.05 billion, which would represent changes of +5.77% and +55.89%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Zscaler. 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.
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 0.05% higher. Zscaler is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Zscaler currently has a Forward P/E ratio of 377.84. This represents a premium compared to its industry's average Forward P/E of 20.7.
Investors should also note that ZS has a PEG ratio of 9.66 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. ZS's industry had an average PEG ratio of 1.97 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 146, which puts it in the bottom 43% 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.
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) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Zscaler (ZS - Free Report) closed at $204.70, marking a -1.7% move from the previous day. This change lagged the S&P 500's 0.48% gain on the day. Elsewhere, the Dow gained 0.2%, while the tech-heavy Nasdaq lost 0.01%.
Heading into today, shares of the cloud-based information security provider had lost 17.41% over the past month, lagging the Computer and Technology sector's loss of 11.75% and the S&P 500's loss of 8.48% in that time.
Investors will be hoping for strength from Zscaler as it approaches its next earnings release. In that report, analysts expect Zscaler to post earnings of $0.11 per share. This would mark a year-over-year decline of 26.67%. Meanwhile, our latest consensus estimate is calling for revenue of $271.81 million, up 54.09% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.55 per share and revenue of $1.05 billion, which would represent changes of +5.77% and +55.89%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Zscaler. 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.
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 0.05% higher. Zscaler is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Zscaler currently has a Forward P/E ratio of 377.84. This represents a premium compared to its industry's average Forward P/E of 20.7.
Investors should also note that ZS has a PEG ratio of 9.66 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. ZS's industry had an average PEG ratio of 1.97 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 146, which puts it in the bottom 43% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.