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Zscaler (ZS) Stock Drops Despite Market Gains: Important Facts to Note
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Zscaler (ZS - Free Report) closed the most recent trading day at $196.60, moving -1.1% from the previous trading session. The stock trailed the S&P 500, which registered a daily gain of 0.73%. Elsewhere, the Dow gained 0.49%, while the tech-heavy Nasdaq added 1.19%.
The stock of cloud-based information security provider has risen by 11.8% in the past month, leading the Computer and Technology sector's gain of 6.36% and the S&P 500's gain of 0.55%.
The investment community will be closely monitoring the performance of Zscaler in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $1.16, reflecting a 20.83% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $937.61 million, up 18.97% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $4.91 per share and a revenue of $3.93 billion, demonstrating changes of +16.63% and +17.22%, respectively, from the preceding year.
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. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 has moved 451.17% higher. Zscaler presently features a Zacks Rank of #3 (Hold).
With respect to valuation, Zscaler is currently being traded at a Forward P/E ratio of 40.48. This denotes a discount relative to the industry average Forward P/E of 54.15.
We can additionally observe that ZS currently boasts a PEG ratio of 2.96. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Security stocks are, on average, holding a PEG ratio of 3.03 based on yesterday's closing prices.
The Security industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 68, putting it in the top 28% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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) Stock Drops Despite Market Gains: Important Facts to Note
Zscaler (ZS - Free Report) closed the most recent trading day at $196.60, moving -1.1% from the previous trading session. The stock trailed the S&P 500, which registered a daily gain of 0.73%. Elsewhere, the Dow gained 0.49%, while the tech-heavy Nasdaq added 1.19%.
The stock of cloud-based information security provider has risen by 11.8% in the past month, leading the Computer and Technology sector's gain of 6.36% and the S&P 500's gain of 0.55%.
The investment community will be closely monitoring the performance of Zscaler in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $1.16, reflecting a 20.83% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $937.61 million, up 18.97% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $4.91 per share and a revenue of $3.93 billion, demonstrating changes of +16.63% and +17.22%, respectively, from the preceding year.
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. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 has moved 451.17% higher. Zscaler presently features a Zacks Rank of #3 (Hold).
With respect to valuation, Zscaler is currently being traded at a Forward P/E ratio of 40.48. This denotes a discount relative to the industry average Forward P/E of 54.15.
We can additionally observe that ZS currently boasts a PEG ratio of 2.96. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Security stocks are, on average, holding a PEG ratio of 3.03 based on yesterday's closing prices.
The Security industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 68, putting it in the top 28% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.