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Zscaler (ZS) Sees a More Significant Dip Than Broader Market: Some Facts to Know
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The most recent trading session ended with Zscaler (ZS - Free Report) standing at $172.27, reflecting a -0.39% shift from the previouse trading day's closing. This move lagged the S&P 500's daily loss of 0.34%. Meanwhile, the Dow gained 0.23%, and the Nasdaq, a tech-heavy index, lost 0.33%.
The cloud-based information security provider's shares have seen a decrease of 8.37% over the last month, not keeping up with the Computer and Technology sector's loss of 4.23% and the S&P 500's loss of 4.05%.
The investment community will be paying close attention to the earnings performance of Zscaler in its upcoming release. The company's upcoming EPS is projected at $0.58, signifying a 20.83% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $535.55 million, reflecting a 27.88% rise from the equivalent quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.73 per share and revenue of $2.12 billion, indicating changes of +52.51% and +31.22%, respectively, compared to the previous year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Zscaler. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.71% higher within the past month. Zscaler is currently a Zacks Rank #2 (Buy).
Looking at its valuation, Zscaler is holding a Forward P/E ratio of 63.28. This represents a premium compared to its industry's average Forward P/E of 23.42.
We can also see that ZS currently has a PEG ratio of 2.25. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Internet - Services industry currently had an average PEG ratio of 2.04 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 27, which puts it in the top 11% 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 follow all of these stock-moving metrics, and many more, on Zacks.com.
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Zscaler (ZS) Sees a More Significant Dip Than Broader Market: Some Facts to Know
The most recent trading session ended with Zscaler (ZS - Free Report) standing at $172.27, reflecting a -0.39% shift from the previouse trading day's closing. This move lagged the S&P 500's daily loss of 0.34%. Meanwhile, the Dow gained 0.23%, and the Nasdaq, a tech-heavy index, lost 0.33%.
The cloud-based information security provider's shares have seen a decrease of 8.37% over the last month, not keeping up with the Computer and Technology sector's loss of 4.23% and the S&P 500's loss of 4.05%.
The investment community will be paying close attention to the earnings performance of Zscaler in its upcoming release. The company's upcoming EPS is projected at $0.58, signifying a 20.83% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $535.55 million, reflecting a 27.88% rise from the equivalent quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.73 per share and revenue of $2.12 billion, indicating changes of +52.51% and +31.22%, respectively, compared to the previous year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Zscaler. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.71% higher within the past month. Zscaler is currently a Zacks Rank #2 (Buy).
Looking at its valuation, Zscaler is holding a Forward P/E ratio of 63.28. This represents a premium compared to its industry's average Forward P/E of 23.42.
We can also see that ZS currently has a PEG ratio of 2.25. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Internet - Services industry currently had an average PEG ratio of 2.04 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 27, which puts it in the top 11% 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 follow all of these stock-moving metrics, and many more, on Zacks.com.