Back to top

Image: Bigstock

Zscaler (ZS) Declines More Than Market: Some Information for Investors

Read MoreHide Full Article

Zscaler (ZS - Free Report) closed the most recent trading day at $294.92, moving -1.51% from the previous trading session. This move lagged the S&P 500's daily loss of 0.92%. Elsewhere, the Dow lost 1.18%, while the tech-heavy Nasdaq lost 0.84%.

Coming into today, shares of the cloud-based information security provider had lost 0.27% in the past month. In that same time, the Computer and Technology sector gained 1.64%, while the S&P 500 gained 1.48%.

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 November 25, 2025. The company is expected to report EPS of $0.85, up 10.39% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $773.35 million, up 23.15% from the year-ago period.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.66 per share and a revenue of $3.27 billion, representing changes of +11.59% and +22.3%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Zscaler. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. At present, Zscaler boasts a Zacks Rank of #3 (Hold).

Digging into valuation, Zscaler currently has a Forward P/E ratio of 81.74. Its industry sports an average Forward P/E of 67.98, so one might conclude that Zscaler is trading at a premium comparatively.

We can additionally observe that ZS currently boasts a PEG ratio of 4.47. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Security industry had an average PEG ratio of 2.64.

The Security industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 49, positioning it in the top 20% 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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


See More Zacks Research for These Tickers


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


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

Published in