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Zscaler (ZS) Gains As Market Dips: What You Should Know
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Zscaler (ZS - Free Report) closed the most recent trading day at $136.19, moving +1.73% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.03%. Elsewhere, the Dow lost 0.46%, while the tech-heavy Nasdaq added 3.16%.
Heading into today, shares of the cloud-based information security provider had gained 24.76% over the past month, outpacing the Computer and Technology sector's gain of 8.43% and the S&P 500's gain of 3.6% in that time.
Wall Street will be looking for positivity from Zscaler as it approaches its next earnings report date. This is expected to be March 2, 2023. The company is expected to report EPS of $0.29, up 123.08% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $363.8 million, up 42.35% from the year-ago period.
ZS's full-year Zacks Consensus Estimates are calling for earnings of $1.24 per share and revenue of $1.52 billion. These results would represent year-over-year changes of +79.71% and +39.74%, respectively.
Investors should also note any recent changes to analyst estimates for Zscaler. 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. 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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 4.07% higher. Zscaler is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Zscaler currently has a Forward P/E ratio of 108.3. This represents a premium compared to its industry's average Forward P/E of 25.56.
It is also worth noting that ZS currently has a PEG ratio of 2.26. 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. ZS's industry had an average PEG ratio of 1.58 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 148, which puts it in the bottom 42% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Zscaler (ZS) Gains As Market Dips: What You Should Know
Zscaler (ZS - Free Report) closed the most recent trading day at $136.19, moving +1.73% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.03%. Elsewhere, the Dow lost 0.46%, while the tech-heavy Nasdaq added 3.16%.
Heading into today, shares of the cloud-based information security provider had gained 24.76% over the past month, outpacing the Computer and Technology sector's gain of 8.43% and the S&P 500's gain of 3.6% in that time.
Wall Street will be looking for positivity from Zscaler as it approaches its next earnings report date. This is expected to be March 2, 2023. The company is expected to report EPS of $0.29, up 123.08% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $363.8 million, up 42.35% from the year-ago period.
ZS's full-year Zacks Consensus Estimates are calling for earnings of $1.24 per share and revenue of $1.52 billion. These results would represent year-over-year changes of +79.71% and +39.74%, respectively.
Investors should also note any recent changes to analyst estimates for Zscaler. 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. 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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 4.07% higher. Zscaler is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Zscaler currently has a Forward P/E ratio of 108.3. This represents a premium compared to its industry's average Forward P/E of 25.56.
It is also worth noting that ZS currently has a PEG ratio of 2.26. 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. ZS's industry had an average PEG ratio of 1.58 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 148, which puts it in the bottom 42% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.