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Zscaler (ZS) Outpaces Stock Market Gains: What You Should Know
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Zscaler (ZS - Free Report) closed at $149.01 in the latest trading session, marking a +0.75% move from the prior day. This move outpaced the S&P 500's daily gain of 0.03%. Meanwhile, the Dow gained 0.01%, and the Nasdaq, a tech-heavy index, lost 1.37%.
Coming into today, shares of the cloud-based information security provider had gained 2.11% in the past month. In that same time, the Computer and Technology sector gained 1.16%, while the S&P 500 gained 3.43%.
Zscaler will be looking to display strength as it nears its next earnings release. On that day, Zscaler is projected to report earnings of $0.49 per share, which would represent year-over-year growth of 96%. Meanwhile, our latest consensus estimate is calling for revenue of $430.42 million, up 35.33% from the prior-year quarter.
ZS's full-year Zacks Consensus Estimates are calling for earnings of $1.63 per share and revenue of $1.59 billion. These results would represent year-over-year changes of +136.23% and +45.96%, respectively.
Any recent changes to analyst estimates for Zscaler should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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 2.7% higher within the past month. Zscaler currently has a Zacks Rank of #3 (Hold).
Investors should also note Zscaler's current valuation metrics, including its Forward P/E ratio of 90.57. This represents a premium compared to its industry's average Forward P/E of 31.
Meanwhile, ZS's PEG ratio is currently 1.49. 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. The Internet - Services industry currently had an average PEG ratio of 1.84 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 77, putting it in the top 31% 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.
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) Outpaces Stock Market Gains: What You Should Know
Zscaler (ZS - Free Report) closed at $149.01 in the latest trading session, marking a +0.75% move from the prior day. This move outpaced the S&P 500's daily gain of 0.03%. Meanwhile, the Dow gained 0.01%, and the Nasdaq, a tech-heavy index, lost 1.37%.
Coming into today, shares of the cloud-based information security provider had gained 2.11% in the past month. In that same time, the Computer and Technology sector gained 1.16%, while the S&P 500 gained 3.43%.
Zscaler will be looking to display strength as it nears its next earnings release. On that day, Zscaler is projected to report earnings of $0.49 per share, which would represent year-over-year growth of 96%. Meanwhile, our latest consensus estimate is calling for revenue of $430.42 million, up 35.33% from the prior-year quarter.
ZS's full-year Zacks Consensus Estimates are calling for earnings of $1.63 per share and revenue of $1.59 billion. These results would represent year-over-year changes of +136.23% and +45.96%, respectively.
Any recent changes to analyst estimates for Zscaler should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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 2.7% higher within the past month. Zscaler currently has a Zacks Rank of #3 (Hold).
Investors should also note Zscaler's current valuation metrics, including its Forward P/E ratio of 90.57. This represents a premium compared to its industry's average Forward P/E of 31.
Meanwhile, ZS's PEG ratio is currently 1.49. 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. The Internet - Services industry currently had an average PEG ratio of 1.84 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 77, putting it in the top 31% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.