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Zscaler (ZS) Ascends While Market Falls: Some Facts to Note
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The most recent trading session ended with Zscaler (ZS - Free Report) standing at $175, reflecting a +0.22% shift from the previouse trading day's closing. The stock's change was more than the S&P 500's daily loss of 0.02%. Meanwhile, the Dow lost 0.21%, and the Nasdaq, a tech-heavy index, added 0.29%.
Prior to today's trading, shares of the cloud-based information security provider had lost 3.74% over the past month. This has lagged the Computer and Technology sector's gain of 1.39% and the S&P 500's gain of 1.29% in that time.
The upcoming earnings release of Zscaler will be of great interest to investors. The company's earnings report is expected on May 30, 2024. On that day, Zscaler is projected to report earnings of $0.65 per share, which would represent year-over-year growth of 35.42%. Meanwhile, our latest consensus estimate is calling for revenue of $535.55 million, up 27.88% from the prior-year quarter.
ZS's full-year Zacks Consensus Estimates are calling for earnings of $2.73 per share and revenue of $2.12 billion. These results would represent year-over-year changes of +52.51% and +31.22%, respectively.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Zscaler. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been a 1.71% rise in the Zacks Consensus EPS estimate. At present, Zscaler boasts a Zacks Rank of #2 (Buy).
With respect to valuation, Zscaler is currently being traded at a Forward P/E ratio of 63.9. This signifies a premium in comparison to the average Forward P/E of 23.72 for its industry.
We can also see that ZS currently has a PEG ratio of 2.27. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Internet - Services industry held an average PEG ratio of 1.85.
The Internet - Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 61, finds itself in the top 25% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow ZS in the coming trading sessions, be sure to utilize Zacks.com.
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Zscaler (ZS) Ascends While Market Falls: Some Facts to Note
The most recent trading session ended with Zscaler (ZS - Free Report) standing at $175, reflecting a +0.22% shift from the previouse trading day's closing. The stock's change was more than the S&P 500's daily loss of 0.02%. Meanwhile, the Dow lost 0.21%, and the Nasdaq, a tech-heavy index, added 0.29%.
Prior to today's trading, shares of the cloud-based information security provider had lost 3.74% over the past month. This has lagged the Computer and Technology sector's gain of 1.39% and the S&P 500's gain of 1.29% in that time.
The upcoming earnings release of Zscaler will be of great interest to investors. The company's earnings report is expected on May 30, 2024. On that day, Zscaler is projected to report earnings of $0.65 per share, which would represent year-over-year growth of 35.42%. Meanwhile, our latest consensus estimate is calling for revenue of $535.55 million, up 27.88% from the prior-year quarter.
ZS's full-year Zacks Consensus Estimates are calling for earnings of $2.73 per share and revenue of $2.12 billion. These results would represent year-over-year changes of +52.51% and +31.22%, respectively.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Zscaler. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been a 1.71% rise in the Zacks Consensus EPS estimate. At present, Zscaler boasts a Zacks Rank of #2 (Buy).
With respect to valuation, Zscaler is currently being traded at a Forward P/E ratio of 63.9. This signifies a premium in comparison to the average Forward P/E of 23.72 for its industry.
We can also see that ZS currently has a PEG ratio of 2.27. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Internet - Services industry held an average PEG ratio of 1.85.
The Internet - Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 61, finds itself in the top 25% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow ZS in the coming trading sessions, be sure to utilize Zacks.com.