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Zscaler (ZS) Stock Moves -0.61%: What You Should Know

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Zscaler (ZS - Free Report) closed the most recent trading day at $148.77, moving -0.61% from the previous trading session. This change was narrower than the S&P 500's 0.67% loss on the day. Elsewhere, the Dow lost 0.33%, while the tech-heavy Nasdaq lost 0.22%.

Heading into today, shares of the cloud-based information security provider had lost 13.31% over the past month, lagging the Computer and Technology sector's loss of 5.64% and the S&P 500's loss of 3.76% in that time.

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, our latest consensus estimate is calling for revenue of $341.13 million, up 47.98% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.18 per share and revenue of $1.5 billion. These totals would mark changes of +71.01% and +37.47%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Zscaler. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 2.86% higher. Zscaler is currently a Zacks Rank #1 (Strong Buy).

Looking at its valuation, Zscaler is holding a Forward P/E ratio of 126.96. For comparison, its industry has an average Forward P/E of 19.91, which means Zscaler is trading at a premium to the group.

It is also worth noting that ZS currently has a PEG ratio of 2.81. 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 1.77 based on yesterday's closing prices.

The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 59, which puts it in the top 24% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.


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