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Zscaler (ZS) Surpasses Market Returns: Some Facts Worth Knowing
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Zscaler (ZS - Free Report) closed the most recent trading day at $134.34, moving +2.54% from the previous trading session. The stock's change was more than the S&P 500's daily gain of 0.26%. Elsewhere, the Dow saw an upswing of 0.24%, while the tech-heavy Nasdaq appreciated by 0.36%.
Prior to today's trading, shares of the cloud-based information security provider had lost 16.01% lagged the Computer and Technology sector's gain of 9.34% and the S&P 500's gain of 5.98%.
The investment community will be closely monitoring the performance of Zscaler in its forthcoming earnings report. The company is predicted to post an EPS of $1, indicating a 19.05% growth compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $834.48 million, indicating a 23.07% upward movement from the same quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.03 per share and a revenue of $3.31 billion, signifying shifts of +22.87% and +23.9%, respectively, from the last year.
Investors should also pay attention to any latest changes in analyst estimates for Zscaler. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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 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 has moved 11.02% lower. 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 32.54. This indicates no noticeable deviation in contrast to its industry's Forward P/E of 32.54.
It's also important to note that ZS currently trades at a PEG ratio of 2.23. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. By the end of yesterday's trading, the Security industry had an average PEG ratio of 2.41.
The Security industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 93, placing it within the top 39% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the 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) Surpasses Market Returns: Some Facts Worth Knowing
Zscaler (ZS - Free Report) closed the most recent trading day at $134.34, moving +2.54% from the previous trading session. The stock's change was more than the S&P 500's daily gain of 0.26%. Elsewhere, the Dow saw an upswing of 0.24%, while the tech-heavy Nasdaq appreciated by 0.36%.
Prior to today's trading, shares of the cloud-based information security provider had lost 16.01% lagged the Computer and Technology sector's gain of 9.34% and the S&P 500's gain of 5.98%.
The investment community will be closely monitoring the performance of Zscaler in its forthcoming earnings report. The company is predicted to post an EPS of $1, indicating a 19.05% growth compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $834.48 million, indicating a 23.07% upward movement from the same quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.03 per share and a revenue of $3.31 billion, signifying shifts of +22.87% and +23.9%, respectively, from the last year.
Investors should also pay attention to any latest changes in analyst estimates for Zscaler. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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 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 has moved 11.02% lower. 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 32.54. This indicates no noticeable deviation in contrast to its industry's Forward P/E of 32.54.
It's also important to note that ZS currently trades at a PEG ratio of 2.23. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. By the end of yesterday's trading, the Security industry had an average PEG ratio of 2.41.
The Security industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 93, placing it within the top 39% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the 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.