Back to top

Image: Bigstock

Zscaler (ZS) Exceeds Market Returns: Some Facts to Consider

Read MoreHide Full Article

Zscaler (ZS - Free Report) closed at $328.90 in the latest trading session, marking a +2.78% move from the prior day. The stock outpaced the S&P 500's daily gain of 1.54%. On the other hand, the Dow registered a gain of 0.81%, and the technology-centric Nasdaq increased by 2.27%.

The cloud-based information security provider's shares have seen an increase of 3.27% over the last month, surpassing the Computer and Technology sector's gain of 1.22% and the S&P 500's gain of 0.29%.

The upcoming earnings release of Zscaler will be of great interest to investors. The company's earnings report is expected on November 25, 2025. The company is forecasted to report an EPS of $0.85, showcasing a 10.39% upward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $773.35 million, up 23.15% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $3.66 per share and revenue of $3.27 billion, which would represent changes of +11.59% and +28.36%, respectively, from the prior year.

Any recent changes to analyst estimates for Zscaler should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Zscaler is holding a Zacks Rank of #3 (Hold) right now.

From a valuation perspective, Zscaler is currently exchanging hands at a Forward P/E ratio of 87.35. This expresses a premium compared to the average Forward P/E of 71.72 of its industry.

We can additionally observe that ZS currently boasts a PEG ratio of 4.77. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Security industry currently had an average PEG ratio of 2.76 as of yesterday's close.

The Security industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 92, positioning it in the top 38% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Zscaler, Inc. (ZS) - free report >>

Published in