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Why Zscaler (ZS) Dipped More Than Broader Market Today
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In the latest market close, Zscaler (ZS - Free Report) reached $168.52, with a -1.25% movement compared to the previous day. This change lagged the S&P 500's daily loss of 0.5%. Elsewhere, the Dow gained 0.12%, while the tech-heavy Nasdaq lost 1.23%.
The cloud-based information security provider's stock has climbed by 7.17% in the past month, exceeding the Computer and Technology sector's loss of 0.1% and the S&P 500's loss of 2.4%.
The investment community will be paying close attention to the earnings performance of Zscaler in its upcoming release. On that day, Zscaler is projected to report earnings of $0.49 per share, which would represent year-over-year growth of 68.97%. Meanwhile, our latest consensus estimate is calling for revenue of $473.41 million, up 33.15% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $2.23 per share and revenue of $2.06 billion, which would represent changes of +24.58% and +27.44%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Zscaler. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.69% higher. As of now, Zscaler holds a Zacks Rank of #3 (Hold).
In terms of valuation, Zscaler is presently being traded at a Forward P/E ratio of 76.55. This signifies a premium in comparison to the average Forward P/E of 24.86 for its industry.
It is also worth noting that ZS currently has a PEG ratio of 1.9. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As the market closed yesterday, the Internet - Services industry was having an average PEG ratio of 1.9.
The Internet - Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 74, this industry ranks in the top 30% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Why Zscaler (ZS) Dipped More Than Broader Market Today
In the latest market close, Zscaler (ZS - Free Report) reached $168.52, with a -1.25% movement compared to the previous day. This change lagged the S&P 500's daily loss of 0.5%. Elsewhere, the Dow gained 0.12%, while the tech-heavy Nasdaq lost 1.23%.
The cloud-based information security provider's stock has climbed by 7.17% in the past month, exceeding the Computer and Technology sector's loss of 0.1% and the S&P 500's loss of 2.4%.
The investment community will be paying close attention to the earnings performance of Zscaler in its upcoming release. On that day, Zscaler is projected to report earnings of $0.49 per share, which would represent year-over-year growth of 68.97%. Meanwhile, our latest consensus estimate is calling for revenue of $473.41 million, up 33.15% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $2.23 per share and revenue of $2.06 billion, which would represent changes of +24.58% and +27.44%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Zscaler. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.69% higher. As of now, Zscaler holds a Zacks Rank of #3 (Hold).
In terms of valuation, Zscaler is presently being traded at a Forward P/E ratio of 76.55. This signifies a premium in comparison to the average Forward P/E of 24.86 for its industry.
It is also worth noting that ZS currently has a PEG ratio of 1.9. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As the market closed yesterday, the Internet - Services industry was having an average PEG ratio of 1.9.
The Internet - Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 74, this industry ranks in the top 30% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.