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Zscaler (ZS) closed at $199.22 in the latest trading session, marking a +1.13% move from the prior day. This move outpaced the S&P 500's daily loss of 2.57%. Elsewhere, the Dow lost 2.05%, while the tech-heavy Nasdaq lost 2.61%.
Investors will be hoping for strength from ZS as it approaches its next earnings release. The company is expected to report EPS of $0.08, down 11.11% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $147.34 million, up 45.49% from the year-ago period.
ZS's full-year Zacks Consensus Estimates are calling for earnings of $0.38 per share and revenue of $611.78 million. These results would represent year-over-year changes of +58.33% and +41.86%, respectively.
Investors should also note any recent changes to analyst estimates for ZS. Recent revisions tend to reflect the latest near-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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. ZS is holding a Zacks Rank of #2 (Buy) right now.
Looking at its valuation, ZS is holding a Forward P/E ratio of 540.78. For comparison, its industry has an average Forward P/E of 37.66, which means ZS is trading at a premium to the group.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 116, putting it in the top 46% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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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