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Zscaler (ZS) Gains But Lags Market: What You Should Know
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Zscaler (ZS - Free Report) closed at $93.38 in the latest trading session, marking a +0.33% move from the prior day. The stock lagged the S&P 500's daily gain of 1.96%. At the same time, the Dow added 1.57%, and the tech-heavy Nasdaq lost 3.03%.
Heading into today, shares of the cloud-based information security provider had lost 15.93% over the past month, lagging the Computer and Technology sector's loss of 0.91% and the S&P 500's gain of 2.19% in that time.
Wall Street will be looking for positivity from Zscaler as it approaches its next earnings report date. On that day, Zscaler is projected to report earnings of $0.39 per share, which would represent year-over-year growth of 129.41%. Meanwhile, our latest consensus estimate is calling for revenue of $397.8 million, up 38.7% from the prior-year quarter.
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.
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 a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
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 6.96% higher. Zscaler is currently a Zacks Rank #2 (Buy).
In terms of valuation, Zscaler is currently trading at a Forward P/E ratio of 61.1. Its industry sports an average Forward P/E of 23.21, so we one might conclude that Zscaler is trading at a premium comparatively.
It is also worth noting that ZS currently has a PEG ratio of 1.03. 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 1.44 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 156, which puts it in the bottom 39% 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) Gains But Lags Market: What You Should Know
Zscaler (ZS - Free Report) closed at $93.38 in the latest trading session, marking a +0.33% move from the prior day. The stock lagged the S&P 500's daily gain of 1.96%. At the same time, the Dow added 1.57%, and the tech-heavy Nasdaq lost 3.03%.
Heading into today, shares of the cloud-based information security provider had lost 15.93% over the past month, lagging the Computer and Technology sector's loss of 0.91% and the S&P 500's gain of 2.19% in that time.
Wall Street will be looking for positivity from Zscaler as it approaches its next earnings report date. On that day, Zscaler is projected to report earnings of $0.39 per share, which would represent year-over-year growth of 129.41%. Meanwhile, our latest consensus estimate is calling for revenue of $397.8 million, up 38.7% from the prior-year quarter.
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.
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 a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
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 6.96% higher. Zscaler is currently a Zacks Rank #2 (Buy).
In terms of valuation, Zscaler is currently trading at a Forward P/E ratio of 61.1. Its industry sports an average Forward P/E of 23.21, so we one might conclude that Zscaler is trading at a premium comparatively.
It is also worth noting that ZS currently has a PEG ratio of 1.03. 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 1.44 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 156, which puts it in the bottom 39% 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.