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Zscaler (ZS) Gains As Market Dips: What You Should Know
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In the latest trading session, Zscaler (ZS - Free Report) closed at $87.37, marking a +0.43% move from the previous day. This change outpaced the S&P 500's 0.7% loss on the day. Meanwhile, the Dow lost 0.8%, and the Nasdaq, a tech-heavy index, lost 1.82%.
Coming into today, shares of the cloud-based information security provider had lost 21.27% in the past month. In that same time, the Computer and Technology sector lost 1.16%, while the S&P 500 gained 0.39%.
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 $0.39 per share, which would represent year-over-year growth of 129.41%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $397.8 million, up 38.7% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.52 per share and revenue of $1.56 billion. These totals would mark changes of +120.29% and +43.21%, respectively, from last year.
Any recent changes to analyst estimates for Zscaler should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Over the past month, the Zacks Consensus EPS estimate has moved 4.19% higher. Zscaler is currently a Zacks Rank #2 (Buy).
In terms of valuation, Zscaler is currently trading at a Forward P/E ratio of 57.11. This represents a premium compared to its industry's average Forward P/E of 23.33.
It is also worth noting that ZS currently has a PEG ratio of 0.96. 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 1.36 based on yesterday's closing prices.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 118, putting it in the top 47% 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
In the latest trading session, Zscaler (ZS - Free Report) closed at $87.37, marking a +0.43% move from the previous day. This change outpaced the S&P 500's 0.7% loss on the day. Meanwhile, the Dow lost 0.8%, and the Nasdaq, a tech-heavy index, lost 1.82%.
Coming into today, shares of the cloud-based information security provider had lost 21.27% in the past month. In that same time, the Computer and Technology sector lost 1.16%, while the S&P 500 gained 0.39%.
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 $0.39 per share, which would represent year-over-year growth of 129.41%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $397.8 million, up 38.7% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.52 per share and revenue of $1.56 billion. These totals would mark changes of +120.29% and +43.21%, respectively, from last year.
Any recent changes to analyst estimates for Zscaler should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Over the past month, the Zacks Consensus EPS estimate has moved 4.19% higher. Zscaler is currently a Zacks Rank #2 (Buy).
In terms of valuation, Zscaler is currently trading at a Forward P/E ratio of 57.11. This represents a premium compared to its industry's average Forward P/E of 23.33.
It is also worth noting that ZS currently has a PEG ratio of 0.96. 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 1.36 based on yesterday's closing prices.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 118, putting it in the top 47% 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.