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Zscaler (ZS) Stock Sinks As Market Gains: Here's Why
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Zscaler (ZS - Free Report) ended the recent trading session at $270.99, demonstrating a -2.44% change from the preceding day's closing price. This move lagged the S&P 500's daily gain of 0.03%. Meanwhile, the Dow experienced a drop of 0.03%, and the technology-dominated Nasdaq saw a decrease of 0.01%.
Shares of the cloud-based information security provider have depreciated by 3.47% over the course of the past month, underperforming the Computer and Technology sector's gain of 6.37%, and the S&P 500's gain of 3.46%.
The upcoming earnings release of Zscaler will be of great interest to investors. The company's earnings report is expected on September 2, 2025. On that day, Zscaler is projected to report earnings of $0.8 per share, which would represent a year-over-year decline of 9.09%. At the same time, our most recent consensus estimate is projecting a revenue of $706.19 million, reflecting a 19.11% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $3.18 per share and revenue of $2.66 billion, which would represent changes of -0.31% and 0%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Zscaler. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Zscaler currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Zscaler has a Forward P/E ratio of 77.89 right now. This denotes a premium relative to the industry average Forward P/E of 63.15.
It is also worth noting that ZS currently has a PEG ratio of 5.4. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Security was holding an average PEG ratio of 2.63 at yesterday's closing price.
The Security industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 97, positioning it in the top 40% 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Zscaler (ZS) Stock Sinks As Market Gains: Here's Why
Zscaler (ZS - Free Report) ended the recent trading session at $270.99, demonstrating a -2.44% change from the preceding day's closing price. This move lagged the S&P 500's daily gain of 0.03%. Meanwhile, the Dow experienced a drop of 0.03%, and the technology-dominated Nasdaq saw a decrease of 0.01%.
Shares of the cloud-based information security provider have depreciated by 3.47% over the course of the past month, underperforming the Computer and Technology sector's gain of 6.37%, and the S&P 500's gain of 3.46%.
The upcoming earnings release of Zscaler will be of great interest to investors. The company's earnings report is expected on September 2, 2025. On that day, Zscaler is projected to report earnings of $0.8 per share, which would represent a year-over-year decline of 9.09%. At the same time, our most recent consensus estimate is projecting a revenue of $706.19 million, reflecting a 19.11% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $3.18 per share and revenue of $2.66 billion, which would represent changes of -0.31% and 0%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Zscaler. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Zscaler currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Zscaler has a Forward P/E ratio of 77.89 right now. This denotes a premium relative to the industry average Forward P/E of 63.15.
It is also worth noting that ZS currently has a PEG ratio of 5.4. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Security was holding an average PEG ratio of 2.63 at yesterday's closing price.
The Security industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 97, positioning it in the top 40% 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.