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Zscaler (ZS) Dips More Than Broader Markets: What You Should Know

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Zscaler (ZS - Free Report) closed the most recent trading day at $84.68, moving -1.04% from the previous trading session. This move lagged the S&P 500's daily loss of 0.26%. At the same time, the Dow lost 0.09%, and the tech-heavy Nasdaq lost 0.24%.

Heading into today, shares of the cloud-based information security provider had gained 11.7% over the past month, outpacing the Computer and Technology sector's gain of 5.19% and the S&P 500's gain of 2.87% in that time.

Investors will be hoping for strength from ZS as it approaches its next earnings release. In that report, analysts expect ZS to post earnings of $0.01 per share. This would mark year-over-year growth of 200%. Meanwhile, our latest consensus estimate is calling for revenue of $82.15 million, up 46.26% from the prior-year quarter.

ZS's full-year Zacks Consensus Estimates are calling for earnings of $0.17 per share and revenue of $297.53 million. These results would represent year-over-year changes of +230.77% and +56.45%, respectively.

Investors might also notice recent changes to analyst estimates for ZS. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. ZS is currently sporting a Zacks Rank of #2 (Buy).

Looking at its valuation, ZS is holding a Forward P/E ratio of 493.67. This represents a premium compared to its industry's average Forward P/E of 29.08.

The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 145, which puts it in the bottom 44% 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 follow all of these stock-moving metrics, and many more, on Zacks.com.


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