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Zscaler (ZS) Outpaces Stock Market Gains: What You Should Know
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Zscaler (ZS - Free Report) closed at $133.50 in the latest trading session, marking a +1.01% move from the prior day. This change outpaced the S&P 500's 0.53% gain on the day. Meanwhile, the Dow gained 0.33%, and the Nasdaq, a tech-heavy index, lost 5.2%.
Prior to today's trading, shares of the cloud-based information security provider had gained 10.22% over the past month. This has outpaced the Computer and Technology sector's gain of 0.96% and the S&P 500's gain of 0.67% in that time.
Wall Street will be looking for positivity from Zscaler as it approaches its next earnings report date. This is expected to be March 2, 2023. On that day, Zscaler is projected to report earnings of $0.29 per share, which would represent year-over-year growth of 123.08%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $363.8 million, up 42.35% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.24 per share and revenue of $1.52 billion. These totals would mark changes of +79.71% and +39.74%, respectively, from last 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. 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. 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 has moved 4.85% higher within the past month. Zscaler is currently a Zacks Rank #3 (Hold).
Digging into valuation, Zscaler currently has a Forward P/E ratio of 106.91. This valuation marks a premium compared to its industry's average Forward P/E of 24.74.
We can also see that ZS currently has a PEG ratio of 2.23. 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 1.39 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 147, which puts it in the bottom 42% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Zscaler (ZS) Outpaces Stock Market Gains: What You Should Know
Zscaler (ZS - Free Report) closed at $133.50 in the latest trading session, marking a +1.01% move from the prior day. This change outpaced the S&P 500's 0.53% gain on the day. Meanwhile, the Dow gained 0.33%, and the Nasdaq, a tech-heavy index, lost 5.2%.
Prior to today's trading, shares of the cloud-based information security provider had gained 10.22% over the past month. This has outpaced the Computer and Technology sector's gain of 0.96% and the S&P 500's gain of 0.67% in that time.
Wall Street will be looking for positivity from Zscaler as it approaches its next earnings report date. This is expected to be March 2, 2023. On that day, Zscaler is projected to report earnings of $0.29 per share, which would represent year-over-year growth of 123.08%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $363.8 million, up 42.35% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.24 per share and revenue of $1.52 billion. These totals would mark changes of +79.71% and +39.74%, respectively, from last 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. 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. 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 has moved 4.85% higher within the past month. Zscaler is currently a Zacks Rank #3 (Hold).
Digging into valuation, Zscaler currently has a Forward P/E ratio of 106.91. This valuation marks a premium compared to its industry's average Forward P/E of 24.74.
We can also see that ZS currently has a PEG ratio of 2.23. 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 1.39 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 147, which puts it in the bottom 42% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.