We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Zscaler (ZS) Falls More Steeply Than Broader Market: What Investors Need to Know
Read MoreHide Full Article
Zscaler (ZS - Free Report) closed the most recent trading day at $188.05, moving -6.26% from the previous trading session. The stock fell short of the S&P 500, which registered a loss of 0.84% for the day. On the other hand, the Dow registered a loss of 0.34%, and the technology-centric Nasdaq decreased by 1.43%.
The stock of cloud-based information security provider has fallen by 9.94% in the past month, lagging the Computer and Technology sector's gain of 1.75% and the S&P 500's gain of 1.8%.
The investment community will be closely monitoring the performance of Zscaler in its forthcoming earnings report. The company is expected to report EPS of $0.89, up 14.1% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $798 million, indicating a 23.17% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.8 per share and revenue of $3.29 billion. These totals would mark changes of +15.85% and +23.17%, respectively, from last 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. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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, there's been a 16.67% rise in the Zacks Consensus EPS estimate. Zscaler is currently sporting a Zacks Rank of #3 (Hold).
In the context of valuation, Zscaler is at present trading with a Forward P/E ratio of 52.84. This signifies a premium in comparison to the average Forward P/E of 47.58 for its industry.
We can also see that ZS currently has a PEG ratio of 2.89. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Security industry held an average PEG ratio of 2.49.
The Security industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 207, which puts it in the bottom 16% 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Bigstock
Zscaler (ZS) Falls More Steeply Than Broader Market: What Investors Need to Know
Zscaler (ZS - Free Report) closed the most recent trading day at $188.05, moving -6.26% from the previous trading session. The stock fell short of the S&P 500, which registered a loss of 0.84% for the day. On the other hand, the Dow registered a loss of 0.34%, and the technology-centric Nasdaq decreased by 1.43%.
The stock of cloud-based information security provider has fallen by 9.94% in the past month, lagging the Computer and Technology sector's gain of 1.75% and the S&P 500's gain of 1.8%.
The investment community will be closely monitoring the performance of Zscaler in its forthcoming earnings report. The company is expected to report EPS of $0.89, up 14.1% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $798 million, indicating a 23.17% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.8 per share and revenue of $3.29 billion. These totals would mark changes of +15.85% and +23.17%, respectively, from last 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. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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, there's been a 16.67% rise in the Zacks Consensus EPS estimate. Zscaler is currently sporting a Zacks Rank of #3 (Hold).
In the context of valuation, Zscaler is at present trading with a Forward P/E ratio of 52.84. This signifies a premium in comparison to the average Forward P/E of 47.58 for its industry.
We can also see that ZS currently has a PEG ratio of 2.89. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Security industry held an average PEG ratio of 2.49.
The Security industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 207, which puts it in the bottom 16% 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.