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Zscaler (ZS) Surpasses Market Returns: Some Facts Worth Knowing
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Zscaler (ZS - Free Report) closed the latest trading day at $164.79, indicating a +1.42% change from the previous session's end. This change outpaced the S&P 500's 0.73% gain on the day. Elsewhere, the Dow gained 0.62%, while the tech-heavy Nasdaq added 0.93%.
Prior to today's trading, shares of the cloud-based information security provider had gained 9.07% over the past month. This has outpaced the Computer and Technology sector's loss of 0.22% and the S&P 500's loss of 2.29% in that time.
Market participants will be closely following the financial results of Zscaler in its upcoming release. It is anticipated that the company will report an EPS of $0.49, marking a 68.97% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $473.41 million, up 33.15% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.23 per share and revenue of $2.06 billion, indicating changes of +24.58% and +27.44%, respectively, compared to the previous year.
Investors might also notice recent changes to analyst estimates for Zscaler. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection has moved 1.21% lower. At present, Zscaler boasts a Zacks Rank of #3 (Hold).
In the context of valuation, Zscaler is at present trading with a Forward P/E ratio of 72.89. For comparison, its industry has an average Forward P/E of 24.27, which means Zscaler is trading at a premium to the group.
Investors should also note that ZS has a PEG ratio of 1.81 right now. 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. The Internet - Services industry had an average PEG ratio of 1.81 as trading concluded yesterday.
The Internet - Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 89, placing it within the top 36% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Zscaler (ZS) Surpasses Market Returns: Some Facts Worth Knowing
Zscaler (ZS - Free Report) closed the latest trading day at $164.79, indicating a +1.42% change from the previous session's end. This change outpaced the S&P 500's 0.73% gain on the day. Elsewhere, the Dow gained 0.62%, while the tech-heavy Nasdaq added 0.93%.
Prior to today's trading, shares of the cloud-based information security provider had gained 9.07% over the past month. This has outpaced the Computer and Technology sector's loss of 0.22% and the S&P 500's loss of 2.29% in that time.
Market participants will be closely following the financial results of Zscaler in its upcoming release. It is anticipated that the company will report an EPS of $0.49, marking a 68.97% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $473.41 million, up 33.15% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.23 per share and revenue of $2.06 billion, indicating changes of +24.58% and +27.44%, respectively, compared to the previous year.
Investors might also notice recent changes to analyst estimates for Zscaler. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection has moved 1.21% lower. At present, Zscaler boasts a Zacks Rank of #3 (Hold).
In the context of valuation, Zscaler is at present trading with a Forward P/E ratio of 72.89. For comparison, its industry has an average Forward P/E of 24.27, which means Zscaler is trading at a premium to the group.
Investors should also note that ZS has a PEG ratio of 1.81 right now. 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. The Internet - Services industry had an average PEG ratio of 1.81 as trading concluded yesterday.
The Internet - Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 89, placing it within the top 36% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.