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Zscaler (ZS) Surpasses Market Returns: Some Facts Worth Knowing

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The most recent trading session ended with Zscaler (ZS - Free Report) standing at $180.60, reflecting a +0.97% shift from the previouse trading day's closing. This change outpaced the S&P 500's 0.09% gain on the day. Elsewhere, the Dow lost 0.49%, while the tech-heavy Nasdaq added 0.65%.

Coming into today, shares of the cloud-based information security provider had gained 5.7% in the past month. In that same time, the Computer and Technology sector gained 7.36%, while the S&P 500 gained 5.78%.

Investors will be eagerly watching for the performance of Zscaler in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on May 30, 2024. In that report, analysts expect Zscaler to post earnings of $0.65 per share. This would mark year-over-year growth of 35.42%. 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.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.73 per share and a revenue of $2.12 billion, indicating changes of +52.51% and +31.22%, respectively, from the former year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Zscaler. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Over the past month, the Zacks Consensus EPS estimate has shifted 1.71% upward. Zscaler is currently a Zacks Rank #2 (Buy).

Digging into valuation, Zscaler currently has a Forward P/E ratio of 65.45. This signifies a premium in comparison to the average Forward P/E of 23.14 for its industry.

Investors should also note that ZS has a PEG ratio of 2.33 right now. 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. As the market closed yesterday, the Internet - Services industry was having an average PEG ratio of 1.91.

The Internet - Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 67, positioning it in the top 27% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on

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