Yahoo Finance Zscaler (ZS) Dips More Than Broader Markets: What You Should Know
Zscaler (ZS) closed at $133.05 in the latest trading session, marking a -1.44% move from the prior day. This move lagged the S&P 500's daily loss of 0.61%. Elsewhere, the Dow lost 0.1%, while the tech-heavy Nasdaq lost 0.67%.
Coming into today, shares of the cloud-based information security provider had gained 29.85% in the past month. In that same time, the Computer and Technology sector gained 17.44%, while the S&P 500 gained 8.32%.
Wall Street will be looking for positivity from Zscaler as it approaches its next earnings report date. On that day, Zscaler is projected to report earnings of $0.29 per share, which would represent year-over-year growth of 123.08%. Meanwhile, our latest consensus estimate is calling for revenue of $363.8 million, up 42.35% from the prior-year quarter.
ZS's full-year Zacks Consensus Estimates are calling for earnings of $1.24 per share and revenue of $1.52 billion. These results would represent year-over-year changes of +79.71% and +39.74%, respectively.
Investors might also notice recent changes to analyst estimates for Zscaler. These recent revisions tend to reflect the evolving nature of short-term business trends. 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 benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 3.87% higher. Zscaler currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Zscaler is currently trading at a Forward P/E ratio of 109.2. Its industry sports an average Forward P/E of 24.67, so we one might conclude that Zscaler is trading at a premium comparatively.
It is also worth noting that ZS currently has a PEG ratio of 2.28. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Internet - Services stocks are, on average, holding a PEG ratio of 1.82 based on yesterday's closing prices.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 175, putting it in the bottom 31% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Zscaler, Inc. (ZS) : Free Stock Analysis Report
