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Zscaler (ZS) Stock Sinks As Market Gains: Here's Why
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In the latest trading session, Zscaler (ZS - Free Report) closed at $148.87, marking a -2.14% move from the previous day. The stock's change was less than the S&P 500's daily gain of 0.19%. Elsewhere, the Dow gained 0.19%, while the tech-heavy Nasdaq added 0.1%.
The cloud-based information security provider's shares have seen an increase of 28.87% over the last month, surpassing the Computer and Technology sector's gain of 19.09% and the S&P 500's gain of 9.13%.
The upcoming earnings release of Zscaler will be of great interest to investors. The company's earnings report is expected on May 26, 2026. It is anticipated that the company will report an EPS of $1, marking a 19.05% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $834.39 million, up 23.06% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $4.03 per share and a revenue of $3.31 billion, representing changes of +22.87% and +23.95%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Zscaler. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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 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. Over the past month, there's been no change in the Zacks Consensus EPS estimate. At present, Zscaler boasts a Zacks Rank of #3 (Hold).
From a valuation perspective, Zscaler is currently exchanging hands at a Forward P/E ratio of 37.78. This valuation marks a discount compared to its industry average Forward P/E of 37.96.
We can also see that ZS currently has a PEG ratio of 2.58. 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. ZS's industry had an average PEG ratio of 2.74 as of yesterday's close.
The Security industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 107, which puts it in the top 44% 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Zscaler (ZS) Stock Sinks As Market Gains: Here's Why
In the latest trading session, Zscaler (ZS - Free Report) closed at $148.87, marking a -2.14% move from the previous day. The stock's change was less than the S&P 500's daily gain of 0.19%. Elsewhere, the Dow gained 0.19%, while the tech-heavy Nasdaq added 0.1%.
The cloud-based information security provider's shares have seen an increase of 28.87% over the last month, surpassing the Computer and Technology sector's gain of 19.09% and the S&P 500's gain of 9.13%.
The upcoming earnings release of Zscaler will be of great interest to investors. The company's earnings report is expected on May 26, 2026. It is anticipated that the company will report an EPS of $1, marking a 19.05% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $834.39 million, up 23.06% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $4.03 per share and a revenue of $3.31 billion, representing changes of +22.87% and +23.95%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Zscaler. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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 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. Over the past month, there's been no change in the Zacks Consensus EPS estimate. At present, Zscaler boasts a Zacks Rank of #3 (Hold).
From a valuation perspective, Zscaler is currently exchanging hands at a Forward P/E ratio of 37.78. This valuation marks a discount compared to its industry average Forward P/E of 37.96.
We can also see that ZS currently has a PEG ratio of 2.58. 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. ZS's industry had an average PEG ratio of 2.74 as of yesterday's close.
The Security industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 107, which puts it in the top 44% 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.