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Zscaler (ZS) Stock Drops Despite Market Gains: Important Facts to Note
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Zscaler (ZS - Free Report) closed the latest trading day at $203.12, indicating a -0.66% change from the previous session's end. The stock's change was less than the S&P 500's daily gain of 0.64%. Elsewhere, the Dow saw an upswing of 1.85%, while the tech-heavy Nasdaq appreciated by 0.2%.
Coming into today, shares of the cloud-based information security provider had gained 10.9% in the past month. In that same time, the Computer and Technology sector gained 1.06%, while the S&P 500 gained 3.82%.
The upcoming earnings release of Zscaler will be of great interest to investors. The company's upcoming EPS is projected at $0.69, signifying a 7.81% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $567.19 million, indicating a 24.65% growth compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.99 per share and a revenue of $2.14 billion, indicating changes of +67.04% and +32.39%, respectively, from the former year.
Investors might also notice recent changes to analyst estimates for Zscaler. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 9.18% higher. Currently, Zscaler is carrying a Zacks Rank of #2 (Buy).
Digging into valuation, Zscaler currently has a Forward P/E ratio of 68.45. For comparison, its industry has an average Forward P/E of 23.12, which means Zscaler is trading at a premium to the group.
It is also worth noting that ZS currently has a PEG ratio of 2.59. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Internet - Services industry held an average PEG ratio of 1.97.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 92, putting it in the top 37% of all 250+ industries.
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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Zscaler (ZS) Stock Drops Despite Market Gains: Important Facts to Note
Zscaler (ZS - Free Report) closed the latest trading day at $203.12, indicating a -0.66% change from the previous session's end. The stock's change was less than the S&P 500's daily gain of 0.64%. Elsewhere, the Dow saw an upswing of 1.85%, while the tech-heavy Nasdaq appreciated by 0.2%.
Coming into today, shares of the cloud-based information security provider had gained 10.9% in the past month. In that same time, the Computer and Technology sector gained 1.06%, while the S&P 500 gained 3.82%.
The upcoming earnings release of Zscaler will be of great interest to investors. The company's upcoming EPS is projected at $0.69, signifying a 7.81% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $567.19 million, indicating a 24.65% growth compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.99 per share and a revenue of $2.14 billion, indicating changes of +67.04% and +32.39%, respectively, from the former year.
Investors might also notice recent changes to analyst estimates for Zscaler. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 9.18% higher. Currently, Zscaler is carrying a Zacks Rank of #2 (Buy).
Digging into valuation, Zscaler currently has a Forward P/E ratio of 68.45. For comparison, its industry has an average Forward P/E of 23.12, which means Zscaler is trading at a premium to the group.
It is also worth noting that ZS currently has a PEG ratio of 2.59. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Internet - Services industry held an average PEG ratio of 1.97.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 92, putting it in the top 37% of all 250+ industries.
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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.