Zscaler (ZS) Outpaces Stock Market Gains: What You Should Know
Zscaler (ZS) closed the most recent trading day at $127.52, moving +1.86% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.25%. Meanwhile, the Dow gained 0.08%, and the Nasdaq, a tech-heavy index, added 7.26%.
Coming into today, shares of the cloud-based information security provider had gained 11.91% in the past month. In that same time, the Computer and Technology sector gained 12.65%, while the S&P 500 gained 5.73%.
Investors will be hoping for strength from Zscaler as it approaches its next earnings release. 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, the Zacks Consensus Estimate for revenue is projecting net sales of $363.8 million, up 42.35% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.24 per share and revenue of $1.52 billion. These totals would mark changes of +79.71% and +39.76%, respectively, from last year.
Any recent changes to analyst estimates for Zscaler should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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 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. The Zacks Consensus EPS estimate has moved 0.61% higher within the past month. Zscaler is currently sporting a Zacks Rank of #2 (Buy).
Digging into valuation, Zscaler currently has a Forward P/E ratio of 101.23. This valuation marks a premium compared to its industry's average Forward P/E of 24.58.
Also, we should mention that ZS has a PEG ratio of 2.12. 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. Internet - Services stocks are, on average, holding a PEG ratio of 1.79 based on yesterday's closing prices.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 90, which puts it in the top 36% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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