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Zscaler (ZS) Dips More Than Broader Markets: What You Should Know
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In the latest trading session, Zscaler (ZS - Free Report) closed at $321.33, marking a -1% move from the previous day. This change lagged the S&P 500's 0.26% loss on the day. Elsewhere, the Dow lost 0.16%, while the tech-heavy Nasdaq lost 0.04%.
Prior to today's trading, shares of the cloud-based information security provider had lost 2.22% over the past month. This has lagged the Computer and Technology sector's gain of 2.19% and the S&P 500's gain of 4.82% in that time.
Investors will be hoping for strength from Zscaler as it approaches its next earnings release. On that day, Zscaler is projected to report earnings of $0.12 per share, which would represent year-over-year growth of 20%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $239.66 million, up 52.61% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.52 per share and revenue of $1.01 billion, which would represent changes of 0% and +49.7%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Zscaler. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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 has moved 10.91% lower. Zscaler currently has a Zacks Rank of #4 (Sell).
In terms of valuation, Zscaler is currently trading at a Forward P/E ratio of 628.75. This represents a premium compared to its industry's average Forward P/E of 26.26.
It is also worth noting that ZS currently has a PEG ratio of 16.95. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ZS's industry had an average PEG ratio of 3.58 as of yesterday's close.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 194, which puts it in the bottom 24% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Zscaler (ZS) Dips More Than Broader Markets: What You Should Know
In the latest trading session, Zscaler (ZS - Free Report) closed at $321.33, marking a -1% move from the previous day. This change lagged the S&P 500's 0.26% loss on the day. Elsewhere, the Dow lost 0.16%, while the tech-heavy Nasdaq lost 0.04%.
Prior to today's trading, shares of the cloud-based information security provider had lost 2.22% over the past month. This has lagged the Computer and Technology sector's gain of 2.19% and the S&P 500's gain of 4.82% in that time.
Investors will be hoping for strength from Zscaler as it approaches its next earnings release. On that day, Zscaler is projected to report earnings of $0.12 per share, which would represent year-over-year growth of 20%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $239.66 million, up 52.61% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.52 per share and revenue of $1.01 billion, which would represent changes of 0% and +49.7%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Zscaler. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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 has moved 10.91% lower. Zscaler currently has a Zacks Rank of #4 (Sell).
In terms of valuation, Zscaler is currently trading at a Forward P/E ratio of 628.75. This represents a premium compared to its industry's average Forward P/E of 26.26.
It is also worth noting that ZS currently has a PEG ratio of 16.95. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ZS's industry had an average PEG ratio of 3.58 as of yesterday's close.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 194, which puts it in the bottom 24% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.