We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
In the latest close session, Zscaler (ZS - Free Report) was up +2.16% at $154.46. This change outpaced the S&P 500's 1.48% gain on the day. On the other hand, the Dow registered a gain of 1.32%, and the technology-centric Nasdaq increased by 2.13%.
The cloud-based information security provider's shares have seen an increase of 2.63% over the last month, surpassing the Computer and Technology sector's loss of 5.75% and the S&P 500's gain of 0.19%.
Market participants will be closely following the financial results of Zscaler in its upcoming release. On that day, Zscaler is projected to report earnings of $1.09 per share, which would represent year-over-year growth of 22.47%. In the meantime, our current consensus estimate forecasts the revenue to be $877.19 million, indicating a 21.96% growth compared to the corresponding quarter of the prior year.
ZS's full-year Zacks Consensus Estimates are calling for earnings of $4.14 per share and revenue of $3.33 billion. These results would represent year-over-year changes of +26.22% and +24.61%, respectively.
Investors should also note any recent changes to analyst estimates for Zscaler. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Zscaler is holding a Zacks Rank of #4 (Sell) right now.
From a valuation perspective, Zscaler is currently exchanging hands at a Forward P/E ratio of 36.56. Its industry sports an average Forward P/E of 50.96, so one might conclude that Zscaler is trading at a discount comparatively.
One should further note that ZS currently holds a PEG ratio of 2.5. 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 was holding an average PEG ratio of 3.04 at yesterday's closing price.
The Security industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 159, putting it in the bottom 36% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
View the Zacks #1 Rank List
Image: Bigstock
Zscaler (ZS) Rises Higher Than Market: Key Facts
In the latest close session, Zscaler (ZS - Free Report) was up +2.16% at $154.46. This change outpaced the S&P 500's 1.48% gain on the day. On the other hand, the Dow registered a gain of 1.32%, and the technology-centric Nasdaq increased by 2.13%.
The cloud-based information security provider's shares have seen an increase of 2.63% over the last month, surpassing the Computer and Technology sector's loss of 5.75% and the S&P 500's gain of 0.19%.
Market participants will be closely following the financial results of Zscaler in its upcoming release. On that day, Zscaler is projected to report earnings of $1.09 per share, which would represent year-over-year growth of 22.47%. In the meantime, our current consensus estimate forecasts the revenue to be $877.19 million, indicating a 21.96% growth compared to the corresponding quarter of the prior year.
ZS's full-year Zacks Consensus Estimates are calling for earnings of $4.14 per share and revenue of $3.33 billion. These results would represent year-over-year changes of +26.22% and +24.61%, respectively.
Investors should also note any recent changes to analyst estimates for Zscaler. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Zscaler is holding a Zacks Rank of #4 (Sell) right now.
From a valuation perspective, Zscaler is currently exchanging hands at a Forward P/E ratio of 36.56. Its industry sports an average Forward P/E of 50.96, so one might conclude that Zscaler is trading at a discount comparatively.
One should further note that ZS currently holds a PEG ratio of 2.5. 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 was holding an average PEG ratio of 3.04 at yesterday's closing price.
The Security industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 159, putting it in the bottom 36% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.