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Zscaler (ZS) Falls More Steeply Than Broader Market: What Investors Need to Know
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Zscaler (ZS - Free Report) closed at $142.26 in the latest trading session, marking a -4.34% move from the prior day. This move lagged the S&P 500's daily loss of 0.14%. On the other hand, the Dow registered a loss of 0.01%, and the technology-centric Nasdaq decreased by 0.57%.
The stock of cloud-based information security provider has risen by 17.87% in the past month, leading the Computer and Technology sector's loss of 4.82% and the S&P 500's gain of 0.25%.
Market participants will be closely following the financial results of Zscaler in its upcoming release. It is anticipated that the company will report an EPS of $1.09, marking a 22.47% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $877.19 million, reflecting a 21.96% rise from the equivalent quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $4.14 per share and a revenue of $3.33 billion, representing changes of +26.22% and +24.57%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Zscaler. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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 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 last 30 days, the Zacks Consensus EPS estimate has remained unchanged. As of now, Zscaler holds a Zacks Rank of #3 (Hold).
With respect to valuation, Zscaler is currently being traded at a Forward P/E ratio of 35.96. This indicates a discount in contrast to its industry's Forward P/E of 50.14.
Investors should also note that ZS has a PEG ratio of 2.46 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Security industry had an average PEG ratio of 3.11 as trading concluded yesterday.
The Security industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 48, this industry ranks in the top 20% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
View the Zacks #1 Rank List
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Zscaler (ZS) Falls More Steeply Than Broader Market: What Investors Need to Know
Zscaler (ZS - Free Report) closed at $142.26 in the latest trading session, marking a -4.34% move from the prior day. This move lagged the S&P 500's daily loss of 0.14%. On the other hand, the Dow registered a loss of 0.01%, and the technology-centric Nasdaq decreased by 0.57%.
The stock of cloud-based information security provider has risen by 17.87% in the past month, leading the Computer and Technology sector's loss of 4.82% and the S&P 500's gain of 0.25%.
Market participants will be closely following the financial results of Zscaler in its upcoming release. It is anticipated that the company will report an EPS of $1.09, marking a 22.47% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $877.19 million, reflecting a 21.96% rise from the equivalent quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $4.14 per share and a revenue of $3.33 billion, representing changes of +26.22% and +24.57%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Zscaler. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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 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 last 30 days, the Zacks Consensus EPS estimate has remained unchanged. As of now, Zscaler holds a Zacks Rank of #3 (Hold).
With respect to valuation, Zscaler is currently being traded at a Forward P/E ratio of 35.96. This indicates a discount in contrast to its industry's Forward P/E of 50.14.
Investors should also note that ZS has a PEG ratio of 2.46 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Security industry had an average PEG ratio of 3.11 as trading concluded yesterday.
The Security industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 48, this industry ranks in the top 20% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.