Introducing Zscaler (NASDAQ:ZS), The Stock That Zoomed 126% In The Last Year
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Zscaler, Inc. (NASDAQ:ZS) shareholders might be concerned after seeing the share price drop 10% in the last week. On the other hand, over the last twelve months the stock has delivered rather impressive returns. We're very pleased to report the share price shot up 126% in that time. So it may be that the share price is simply cooling off after a strong rise. Only time will tell if there is still too much optimism currently reflected in the share price.
Check out our latest analysis for Zscaler
Zscaler isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. When a company doesn't make profits, we'd generally expect to see good revenue growth. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.
In the last year Zscaler saw its revenue grow by 57%. That's well above most other pre-profit companies. Meanwhile, the market has paid attention, sending the share price soaring 126% in response. It's great to see strong revenue growth, but the question is whether it can be sustained. Given the positive sentiment around the stock we're cautious, but there's no doubt its worth watching.
The graphic below shows how revenue and earnings have changed as management guided the business forward. If you want to see cashflow, you can click on the chart.
We're pleased to report that the CEO is remunerated more modestly than most CEOs at similarly capitalized companies. But while CEO remuneration is always worth checking, the really important question is whether the company can grow earnings going forward. This free report showing analyst forecasts should help you form a view on Zscaler
A Different Perspective
It's nice to see that Zscaler shareholders have gained 126% over the last year. And the share price momentum remains respectable, with a gain of 41% in the last three months. This suggests the company is continuing to win over new investors. Most investors take the time to check the data on insider transactions. You can click here to see if insiders have been buying or selling.
Of course Zscaler may not be the best stock to buy. So you may wish to see this free collection of growth stocks.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
