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Here's Why Zscaler (ZS) Gained But Lagged the Market Today
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Zscaler (ZS - Free Report) ended the recent trading session at $165.75, demonstrating a +0.31% swing from the preceding day's closing price. This move lagged the S&P 500's daily gain of 1.04%. At the same time, the Dow added 0.76%, and the tech-heavy Nasdaq gained 1.03%.
Heading into today, shares of the cloud-based information security provider had lost 18.05% over the past month, lagging the Computer and Technology sector's loss of 13.91% and the S&P 500's loss of 6.74% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Zscaler in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.69, showcasing a 7.81% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $567.11 million, indicating a 24.64% growth compared to the corresponding quarter of the prior year.
Investors should also note any recent changes to analyst estimates for Zscaler. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 9.46% lower. Zscaler is currently sporting a Zacks Rank of #3 (Hold).
In the context of valuation, Zscaler is at present trading with a Forward P/E ratio of 50.51. This expresses a premium compared to the average Forward P/E of 21.09 of its industry.
One should further note that ZS currently holds a PEG ratio of 1.91. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Internet - Services was holding an average PEG ratio of 1.75 at yesterday's closing price.
The Internet - Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 162, finds itself in the bottom 36% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Here's Why Zscaler (ZS) Gained But Lagged the Market Today
Zscaler (ZS - Free Report) ended the recent trading session at $165.75, demonstrating a +0.31% swing from the preceding day's closing price. This move lagged the S&P 500's daily gain of 1.04%. At the same time, the Dow added 0.76%, and the tech-heavy Nasdaq gained 1.03%.
Heading into today, shares of the cloud-based information security provider had lost 18.05% over the past month, lagging the Computer and Technology sector's loss of 13.91% and the S&P 500's loss of 6.74% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Zscaler in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.69, showcasing a 7.81% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $567.11 million, indicating a 24.64% growth compared to the corresponding quarter of the prior year.
Investors should also note any recent changes to analyst estimates for Zscaler. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 9.46% lower. Zscaler is currently sporting a Zacks Rank of #3 (Hold).
In the context of valuation, Zscaler is at present trading with a Forward P/E ratio of 50.51. This expresses a premium compared to the average Forward P/E of 21.09 of its industry.
One should further note that ZS currently holds a PEG ratio of 1.91. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Internet - Services was holding an average PEG ratio of 1.75 at yesterday's closing price.
The Internet - Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 162, finds itself in the bottom 36% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.