In the latest trading session, Zscaler (ZS - Free Report) closed at $58.97, marking a +0.98% move from the previous day. This change outpaced the S&P 500's 0.54% loss on the day. Elsewhere, the Dow lost 0.94%, while the tech-heavy Nasdaq lost 0.54%.
Heading into today, shares of the cloud-based information security provider had gained 8.15% over the past month, outpacing the Computer and Technology sector's gain of 5.9% and the S&P 500's gain of 3.22% in that time.
Wall Street will be looking for positivity from ZS as it approaches its next earnings report date. This is expected to be February 20, 2020. On that day, ZS is projected to report earnings of $0.03 per share, which would represent a year-over-year decline of 66.67%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $98.90 million, up 33.11% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.15 per share and revenue of $409.84 million. These totals would mark changes of -31.82% and +35.33%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for ZS. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. ZS currently has a Zacks Rank of #3 (Hold).
In terms of valuation, ZS is currently trading at a Forward P/E ratio of 400.78. For comparison, its industry has an average Forward P/E of 27.88, which means ZS is trading at a premium to the group.
Meanwhile, ZS's PEG ratio is currently 10.97. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Services was holding an average PEG ratio of 2.17 at yesterday's closing price.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 160, putting it in the bottom 38% 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.
To follow ZS in the coming trading sessions, be sure to utilize Zacks.com.