Zscaler (ZS) closed at $126.53 in the latest trading session, marking a +1.66% move from the prior day. This move outpaced the S&P 500's daily loss of 0.73%. Elsewhere, the Dow lost 0.77%, while the tech-heavy Nasdaq lost 7.92%.
Heading into today, shares of the cloud-based information security provider had gained 34.83% over the past month, outpacing the Computer and Technology sector's gain of 6.56% and the S&P 500's gain of 0.5% in that time.
Investors will be hoping for strength from Zscaler as it approaches its next earnings release, which is expected to be June 1, 2023. In that report, analysts expect Zscaler to post earnings of $0.42 per share. This would mark year-over-year growth of 147.06%. Our most recent consensus estimate is calling for quarterly revenue of $410.65 million, up 43.18% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.54 per share and revenue of $1.59 billion. These totals would mark changes of +123.19% and +45.71%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Zscaler. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.28% higher. Zscaler is currently a Zacks Rank #3 (Hold).
Investors should also note Zscaler's current valuation metrics, including its Forward P/E ratio of 80.82. Its industry sports an average Forward P/E of 22.8, so we one might conclude that Zscaler is trading at a premium comparatively.
Also, we should mention that ZS has a PEG ratio of 1.66. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Services industry currently had an average PEG ratio of 1.57 as of yesterday's close.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 83, putting it in the top 33% 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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