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Zscaler (ZS) Dips More Than Broader Markets: What You Should Know
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Zscaler (ZS - Free Report) closed the most recent trading day at $122.65, moving -0.9% from the previous trading session. This change lagged the S&P 500's 0.07% loss on the day. Meanwhile, the Dow gained 0.31%, and the Nasdaq, a tech-heavy index, lost 3.22%.
Prior to today's trading, shares of the cloud-based information security provider had gained 13.77% over the past month. This has outpaced the Computer and Technology sector's gain of 11.67% and the S&P 500's gain of 4.64% in that time.
Zscaler will be looking to display strength as it nears its next earnings release. In that report, analysts expect Zscaler to post earnings of $0.29 per share. This would mark year-over-year growth of 123.08%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $363.63 million, up 42.29% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.24 per share and revenue of $1.52 billion, which would represent changes of +79.71% and +39.73%, respectively, from the prior year.
Any recent changes to analyst estimates for Zscaler should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Within the past 30 days, our consensus EPS projection has moved 0.61% higher. Zscaler is currently a Zacks Rank #2 (Buy).
In terms of valuation, Zscaler is currently trading at a Forward P/E ratio of 100.07. This valuation marks a premium compared to its industry's average Forward P/E of 24.62.
It is also worth noting that ZS currently has a PEG ratio of 2.09. 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. The Internet - Services was holding an average PEG ratio of 1.78 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 97, putting it in the top 39% 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.
To follow ZS in the coming trading sessions, be sure to utilize Zacks.com.
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Zscaler (ZS) Dips More Than Broader Markets: What You Should Know
Zscaler (ZS - Free Report) closed the most recent trading day at $122.65, moving -0.9% from the previous trading session. This change lagged the S&P 500's 0.07% loss on the day. Meanwhile, the Dow gained 0.31%, and the Nasdaq, a tech-heavy index, lost 3.22%.
Prior to today's trading, shares of the cloud-based information security provider had gained 13.77% over the past month. This has outpaced the Computer and Technology sector's gain of 11.67% and the S&P 500's gain of 4.64% in that time.
Zscaler will be looking to display strength as it nears its next earnings release. In that report, analysts expect Zscaler to post earnings of $0.29 per share. This would mark year-over-year growth of 123.08%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $363.63 million, up 42.29% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.24 per share and revenue of $1.52 billion, which would represent changes of +79.71% and +39.73%, respectively, from the prior year.
Any recent changes to analyst estimates for Zscaler should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Within the past 30 days, our consensus EPS projection has moved 0.61% higher. Zscaler is currently a Zacks Rank #2 (Buy).
In terms of valuation, Zscaler is currently trading at a Forward P/E ratio of 100.07. This valuation marks a premium compared to its industry's average Forward P/E of 24.62.
It is also worth noting that ZS currently has a PEG ratio of 2.09. 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. The Internet - Services was holding an average PEG ratio of 1.78 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 97, putting it in the top 39% 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.
To follow ZS in the coming trading sessions, be sure to utilize Zacks.com.