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Zscaler (ZS) Gains As Market Dips: What You Should Know
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Zscaler (ZS - Free Report) closed at $182.92 in the latest trading session, marking a +1.54% move from the prior day. The stock outpaced the S&P 500's daily loss of 1.03%. At the same time, the Dow lost 1.15%, and the tech-heavy Nasdaq gained 0.27%.
Coming into today, shares of the cloud-based information security provider had gained 21.96% in the past month. In that same time, the Computer and Technology sector lost 4.49%, while the S&P 500 lost 3.51%.
Wall Street will be looking for positivity from Zscaler as it approaches its next earnings report date. In that report, analysts expect Zscaler to post earnings of $0.26 per share. This would mark year-over-year growth of 85.71%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $341.13 million, up 47.98% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.17 per share and revenue of $1.5 billion. These totals would mark changes of +69.57% and +37.47%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Zscaler. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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.
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. Within the past 30 days, our consensus EPS projection has moved 19.09% higher. Zscaler currently has a Zacks Rank of #2 (Buy).
Looking at its valuation, Zscaler is holding a Forward P/E ratio of 154.37. This represents a premium compared to its industry's average Forward P/E of 20.
Investors should also note that ZS has a PEG ratio of 3.42 right now. 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 industry currently had an average PEG ratio of 1.73 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 54, which puts it in the top 22% 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) Gains As Market Dips: What You Should Know
Zscaler (ZS - Free Report) closed at $182.92 in the latest trading session, marking a +1.54% move from the prior day. The stock outpaced the S&P 500's daily loss of 1.03%. At the same time, the Dow lost 1.15%, and the tech-heavy Nasdaq gained 0.27%.
Coming into today, shares of the cloud-based information security provider had gained 21.96% in the past month. In that same time, the Computer and Technology sector lost 4.49%, while the S&P 500 lost 3.51%.
Wall Street will be looking for positivity from Zscaler as it approaches its next earnings report date. In that report, analysts expect Zscaler to post earnings of $0.26 per share. This would mark year-over-year growth of 85.71%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $341.13 million, up 47.98% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.17 per share and revenue of $1.5 billion. These totals would mark changes of +69.57% and +37.47%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Zscaler. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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.
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. Within the past 30 days, our consensus EPS projection has moved 19.09% higher. Zscaler currently has a Zacks Rank of #2 (Buy).
Looking at its valuation, Zscaler is holding a Forward P/E ratio of 154.37. This represents a premium compared to its industry's average Forward P/E of 20.
Investors should also note that ZS has a PEG ratio of 3.42 right now. 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 industry currently had an average PEG ratio of 1.73 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 54, which puts it in the top 22% 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.