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Why Zscaler (ZS) Dipped More Than Broader Market Today
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In the latest close session, Zscaler (ZS - Free Report) was down 9.16% at $203.88. This move lagged the S&P 500's daily loss of 4.36%. Meanwhile, the Dow lost 3.44%, and the Nasdaq, a tech-heavy index, lost 5.52%.
Coming into today, shares of the cloud-based information security provider had gained 5.1% in the past month. In that same time, the Computer and Technology sector lost 11.65%, while the S&P 500 lost 0.38%.
The investment community will be paying close attention to the earnings performance of Zscaler in its upcoming release. The company's upcoming EPS is projected at $1.16, signifying a 20.83% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $937.56 million, showing a 18.96% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $4.91 per share and revenue of $3.93 billion, which would represent changes of +16.63% and +23.82%, respectively, from the prior 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. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been a 0.08% rise in the Zacks Consensus EPS estimate. Zscaler is currently a Zacks Rank #3 (Hold).
In the context of valuation, Zscaler is at present trading with a Forward P/E ratio of 45.74. This valuation marks a discount compared to its industry average Forward P/E of 48.65.
We can also see that ZS currently has a PEG ratio of 3.05. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Security was holding an average PEG ratio of 3.05 at yesterday's closing price.
The Security industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 110, putting it in the top 45% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within 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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Why Zscaler (ZS) Dipped More Than Broader Market Today
In the latest close session, Zscaler (ZS - Free Report) was down 9.16% at $203.88. This move lagged the S&P 500's daily loss of 4.36%. Meanwhile, the Dow lost 3.44%, and the Nasdaq, a tech-heavy index, lost 5.52%.
Coming into today, shares of the cloud-based information security provider had gained 5.1% in the past month. In that same time, the Computer and Technology sector lost 11.65%, while the S&P 500 lost 0.38%.
The investment community will be paying close attention to the earnings performance of Zscaler in its upcoming release. The company's upcoming EPS is projected at $1.16, signifying a 20.83% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $937.56 million, showing a 18.96% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $4.91 per share and revenue of $3.93 billion, which would represent changes of +16.63% and +23.82%, respectively, from the prior 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. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been a 0.08% rise in the Zacks Consensus EPS estimate. Zscaler is currently a Zacks Rank #3 (Hold).
In the context of valuation, Zscaler is at present trading with a Forward P/E ratio of 45.74. This valuation marks a discount compared to its industry average Forward P/E of 48.65.
We can also see that ZS currently has a PEG ratio of 3.05. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Security was holding an average PEG ratio of 3.05 at yesterday's closing price.
The Security industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 110, putting it in the top 45% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within 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.