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Zscaler (ZS) Outpaces Stock Market Gains: What You Should Know
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In the latest trading session, Zscaler (ZS - Free Report) closed at $104.95, marking a +1.17% move from the previous day. This move outpaced the S&P 500's daily gain of 0.1%. At the same time, the Dow added 0.3%, and the tech-heavy Nasdaq lost 2.19%.
Prior to today's trading, shares of the cloud-based information security provider had lost 1.62% over the past month. This has lagged the Computer and Technology sector's gain of 7.7% and the S&P 500's gain of 3.13% in that time.
Zscaler will be looking to display strength as it nears its next earnings release. On that day, Zscaler is projected to report earnings of $0.39 per share, which would represent year-over-year growth of 129.41%. Our most recent consensus estimate is calling for quarterly revenue of $397.8 million, up 38.7% from the year-ago period.
ZS's full-year Zacks Consensus Estimates are calling for earnings of $1.52 per share and revenue of $1.56 billion. These results would represent year-over-year changes of +120.29% and +43.21%, respectively.
It is also important to note the recent changes to analyst estimates for Zscaler. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 9.52% higher within the past month. Zscaler is holding a Zacks Rank of #2 (Buy) right now.
In terms of valuation, Zscaler is currently trading at a Forward P/E ratio of 68.1. Its industry sports an average Forward P/E of 23.37, so we one might conclude that Zscaler is trading at a premium comparatively.
We can also see that ZS currently has a PEG ratio of 1.14. 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. Internet - Services stocks are, on average, holding a PEG ratio of 1.47 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 75, putting it in the top 30% 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.
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Zscaler (ZS) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Zscaler (ZS - Free Report) closed at $104.95, marking a +1.17% move from the previous day. This move outpaced the S&P 500's daily gain of 0.1%. At the same time, the Dow added 0.3%, and the tech-heavy Nasdaq lost 2.19%.
Prior to today's trading, shares of the cloud-based information security provider had lost 1.62% over the past month. This has lagged the Computer and Technology sector's gain of 7.7% and the S&P 500's gain of 3.13% in that time.
Zscaler will be looking to display strength as it nears its next earnings release. On that day, Zscaler is projected to report earnings of $0.39 per share, which would represent year-over-year growth of 129.41%. Our most recent consensus estimate is calling for quarterly revenue of $397.8 million, up 38.7% from the year-ago period.
ZS's full-year Zacks Consensus Estimates are calling for earnings of $1.52 per share and revenue of $1.56 billion. These results would represent year-over-year changes of +120.29% and +43.21%, respectively.
It is also important to note the recent changes to analyst estimates for Zscaler. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 9.52% higher within the past month. Zscaler is holding a Zacks Rank of #2 (Buy) right now.
In terms of valuation, Zscaler is currently trading at a Forward P/E ratio of 68.1. Its industry sports an average Forward P/E of 23.37, so we one might conclude that Zscaler is trading at a premium comparatively.
We can also see that ZS currently has a PEG ratio of 1.14. 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. Internet - Services stocks are, on average, holding a PEG ratio of 1.47 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 75, putting it in the top 30% 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.