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Zscaler (ZS) Stock Dips While Market Gains: Key Facts
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Zscaler (ZS - Free Report) closed the most recent trading day at $172.60, moving -2.88% from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 0.1% for the day. On the other hand, the Dow registered a gain of 0.07%, and the technology-centric Nasdaq increased by 0.14%.
The cloud-based information security provider's shares have seen a decrease of 16.95% over the last month, not keeping up with the Computer and Technology sector's loss of 4.05% and the S&P 500's loss of 1.43%.
The upcoming earnings release of Zscaler will be of great interest to investors. The company's earnings report is expected on February 26, 2026. The company's upcoming EPS is projected at $0.89, signifying a 14.10% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $798 million, up 23.17% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.83 per share and a revenue of $3.29 billion, representing changes of +16.77% and +23.17%, respectively, from the prior year.
Any recent changes to analyst estimates for Zscaler should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 571.88% higher. Right now, Zscaler possesses a Zacks Rank of #4 (Sell).
With respect to valuation, Zscaler is currently being traded at a Forward P/E ratio of 46.44. This represents a premium compared to its industry average Forward P/E of 43.49.
Also, we should mention that ZS has a PEG ratio of 2.54. 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. As of the close of trade yesterday, the Security industry held an average PEG ratio of 2.44.
The Security industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 208, this industry ranks in the bottom 16% of all industries, numbering over 250.
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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Zscaler (ZS) Stock Dips While Market Gains: Key Facts
Zscaler (ZS - Free Report) closed the most recent trading day at $172.60, moving -2.88% from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 0.1% for the day. On the other hand, the Dow registered a gain of 0.07%, and the technology-centric Nasdaq increased by 0.14%.
The cloud-based information security provider's shares have seen a decrease of 16.95% over the last month, not keeping up with the Computer and Technology sector's loss of 4.05% and the S&P 500's loss of 1.43%.
The upcoming earnings release of Zscaler will be of great interest to investors. The company's earnings report is expected on February 26, 2026. The company's upcoming EPS is projected at $0.89, signifying a 14.10% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $798 million, up 23.17% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.83 per share and a revenue of $3.29 billion, representing changes of +16.77% and +23.17%, respectively, from the prior year.
Any recent changes to analyst estimates for Zscaler should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 571.88% higher. Right now, Zscaler possesses a Zacks Rank of #4 (Sell).
With respect to valuation, Zscaler is currently being traded at a Forward P/E ratio of 46.44. This represents a premium compared to its industry average Forward P/E of 43.49.
Also, we should mention that ZS has a PEG ratio of 2.54. 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. As of the close of trade yesterday, the Security industry held an average PEG ratio of 2.44.
The Security industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 208, this industry ranks in the bottom 16% of all industries, numbering over 250.
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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.