In the latest trading session, Zscaler (ZS - Free Report) closed at $47.30, marking a -1.91% move from the previous day. This move lagged the S&P 500's daily gain of 0.64%. Elsewhere, the Dow gained 0.57%, while the tech-heavy Nasdaq added 0.6%.
Prior to today's trading, shares of the cloud-based information security provider had lost 2.92% over the past month. This has lagged the Computer and Technology sector's loss of 1.05% and the S&P 500's loss of 1.87% in that time.
ZS will be looking to display strength as it nears its next earnings release. On that day, ZS is projected to report earnings of $0.01 per share, which would represent no growth from the year-ago period. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $89.34 million, up 41.14% from the year-ago period.
ZS's full-year Zacks Consensus Estimates are calling for earnings of $0.14 per share and revenue of $401.72 million. These results would represent year-over-year changes of -36.36% and +32.65%, respectively.
Any recent changes to analyst estimates for ZS should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 1.37% higher within the past month. ZS is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, ZS is currently trading at a Forward P/E ratio of 334.86. For comparison, its industry has an average Forward P/E of 27.33, which means ZS is trading at a premium to the group.
It is also worth noting that ZS currently has a PEG ratio of 27.65. 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. Internet - Services stocks are, on average, holding a PEG ratio of 2.24 based on yesterday's closing prices.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 161, putting it in the bottom 37% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.