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Here's Why Zscaler (ZS) Gained But Lagged the Market Today
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The latest trading session saw Zscaler (ZS - Free Report) ending at $197.37, denoting a +0.01% adjustment from its last day's close. The stock's change was less than the S&P 500's daily gain of 1.02%. At the same time, the Dow added 1.09%, and the tech-heavy Nasdaq gained 1.18%.
Shares of the cloud-based information security provider have appreciated by 5.17% over the course of the past month, underperforming the Computer and Technology sector's gain of 8.46% and outperforming the S&P 500's gain of 4.44%.
The investment community will be closely monitoring the performance of Zscaler in its forthcoming earnings report. The company is predicted to post an EPS of $0.69, indicating a 7.81% growth compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $567.19 million, reflecting a 24.65% rise from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.99 per share and a revenue of $2.14 billion, signifying shifts of +67.04% and +32.39%, respectively, from the last 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. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 9.37% higher. As of now, Zscaler holds a Zacks Rank of #1 (Strong Buy).
Digging into valuation, Zscaler currently has a Forward P/E ratio of 66.07. This valuation marks a premium compared to its industry's average Forward P/E of 24.85.
We can additionally observe that ZS currently boasts a PEG ratio of 2.5. 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. By the end of yesterday's trading, the Internet - Services industry had an average PEG ratio of 2.
The Internet - Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 101, this industry ranks in the top 41% of all industries, numbering over 250.
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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Here's Why Zscaler (ZS) Gained But Lagged the Market Today
The latest trading session saw Zscaler (ZS - Free Report) ending at $197.37, denoting a +0.01% adjustment from its last day's close. The stock's change was less than the S&P 500's daily gain of 1.02%. At the same time, the Dow added 1.09%, and the tech-heavy Nasdaq gained 1.18%.
Shares of the cloud-based information security provider have appreciated by 5.17% over the course of the past month, underperforming the Computer and Technology sector's gain of 8.46% and outperforming the S&P 500's gain of 4.44%.
The investment community will be closely monitoring the performance of Zscaler in its forthcoming earnings report. The company is predicted to post an EPS of $0.69, indicating a 7.81% growth compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $567.19 million, reflecting a 24.65% rise from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.99 per share and a revenue of $2.14 billion, signifying shifts of +67.04% and +32.39%, respectively, from the last 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. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 9.37% higher. As of now, Zscaler holds a Zacks Rank of #1 (Strong Buy).
Digging into valuation, Zscaler currently has a Forward P/E ratio of 66.07. This valuation marks a premium compared to its industry's average Forward P/E of 24.85.
We can additionally observe that ZS currently boasts a PEG ratio of 2.5. 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. By the end of yesterday's trading, the Internet - Services industry had an average PEG ratio of 2.
The Internet - Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 101, this industry ranks in the top 41% of all industries, numbering over 250.
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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.