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Zscaler (ZS) Surpasses Market Returns: Some Facts Worth Knowing
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Zscaler (ZS - Free Report) closed at $151.63 in the latest trading session, marking a +2.94% move from the prior day. The stock's performance was ahead of the S&P 500's daily gain of 0.21%. Elsewhere, the Dow saw an upswing of 1.03%, while the tech-heavy Nasdaq depreciated by 0.22%.
Coming into today, shares of the cloud-based information security provider had gained 7.05% in the past month. In that same time, the Computer and Technology sector lost 2.91%, while the S&P 500 gained 1.7%.
Investors will be eagerly watching for the performance of Zscaler in its upcoming earnings disclosure. In that report, analysts expect Zscaler to post earnings of $1.09 per share. This would mark year-over-year growth of 22.47%. 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 full year, the Zacks Consensus Estimates project earnings of $4.14 per share and a revenue of $3.33 billion, demonstrating changes of +26.22% and +24.61%, respectively, from the preceding year.
Investors might also notice recent changes to analyst estimates for Zscaler. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. 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 35.61. This indicates a discount in contrast to its industry's Forward P/E of 48.32.
It is also worth noting that ZS currently has a PEG ratio of 2.44. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. ZS's industry had an average PEG ratio of 3.17 as of yesterday's close.
The Security industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 62, putting it in the top 26% 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.
To follow ZS in the coming trading sessions, be sure to utilize Zacks.com.
View the Zacks #1 Rank List
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Zscaler (ZS) Surpasses Market Returns: Some Facts Worth Knowing
Zscaler (ZS - Free Report) closed at $151.63 in the latest trading session, marking a +2.94% move from the prior day. The stock's performance was ahead of the S&P 500's daily gain of 0.21%. Elsewhere, the Dow saw an upswing of 1.03%, while the tech-heavy Nasdaq depreciated by 0.22%.
Coming into today, shares of the cloud-based information security provider had gained 7.05% in the past month. In that same time, the Computer and Technology sector lost 2.91%, while the S&P 500 gained 1.7%.
Investors will be eagerly watching for the performance of Zscaler in its upcoming earnings disclosure. In that report, analysts expect Zscaler to post earnings of $1.09 per share. This would mark year-over-year growth of 22.47%. 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 full year, the Zacks Consensus Estimates project earnings of $4.14 per share and a revenue of $3.33 billion, demonstrating changes of +26.22% and +24.61%, respectively, from the preceding year.
Investors might also notice recent changes to analyst estimates for Zscaler. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. 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 35.61. This indicates a discount in contrast to its industry's Forward P/E of 48.32.
It is also worth noting that ZS currently has a PEG ratio of 2.44. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. ZS's industry had an average PEG ratio of 3.17 as of yesterday's close.
The Security industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 62, putting it in the top 26% 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.
To follow ZS in the coming trading sessions, be sure to utilize Zacks.com.