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Zscaler (ZS) Outpaces Stock Market Gains: What You Should Know
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Zscaler (ZS - Free Report) ended the recent trading session at $177.46, demonstrating a +0.31% swing from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily gain of 0.02%. On the other hand, the Dow registered a loss of 0.11%, and the technology-centric Nasdaq increased by 0.1%.
Shares of the cloud-based information security provider witnessed a loss of 9.56% over the previous month, trailing the performance of the Computer and Technology sector with its loss of 5.13% and the S&P 500's loss of 3.01%.
Market participants will be closely following the financial results of Zscaler in its upcoming release. The company is forecasted to report an EPS of $0.65, showcasing a 35.42% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $535.55 million, up 27.88% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $2.73 per share and revenue of $2.12 billion, which would represent changes of +52.51% and +31.22%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Zscaler. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 1.71% higher within the past month. As of now, Zscaler holds a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that Zscaler has a Forward P/E ratio of 64.74 right now. This denotes a premium relative to the industry's average Forward P/E of 24.74.
Investors should also note that ZS has a PEG ratio of 2.3 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Internet - Services industry stood at 2.06 at the close of the market yesterday.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 54, putting it in the top 22% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Zscaler (ZS) Outpaces Stock Market Gains: What You Should Know
Zscaler (ZS - Free Report) ended the recent trading session at $177.46, demonstrating a +0.31% swing from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily gain of 0.02%. On the other hand, the Dow registered a loss of 0.11%, and the technology-centric Nasdaq increased by 0.1%.
Shares of the cloud-based information security provider witnessed a loss of 9.56% over the previous month, trailing the performance of the Computer and Technology sector with its loss of 5.13% and the S&P 500's loss of 3.01%.
Market participants will be closely following the financial results of Zscaler in its upcoming release. The company is forecasted to report an EPS of $0.65, showcasing a 35.42% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $535.55 million, up 27.88% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $2.73 per share and revenue of $2.12 billion, which would represent changes of +52.51% and +31.22%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Zscaler. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 1.71% higher within the past month. As of now, Zscaler holds a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that Zscaler has a Forward P/E ratio of 64.74 right now. This denotes a premium relative to the industry's average Forward P/E of 24.74.
Investors should also note that ZS has a PEG ratio of 2.3 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Internet - Services industry stood at 2.06 at the close of the market yesterday.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 54, putting it in the top 22% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.