Zscaler (ZS) Outperforms Broader Market: What You Need to Know
Zscaler (ZS) closed at $227.91 in the latest trading session, marking a +1.14% move from the prior day. This move outpaced the S&P 500's daily gain of 0.88%. Elsewhere, the Dow saw an upswing of 0.54%, while the tech-heavy Nasdaq appreciated by 1.35%.
Shares of the cloud-based information security provider witnessed a gain of 3.02% over the previous month, beating the performance of the Computer and Technology sector with its gain of 0.72% and the S&P 500's gain of 0.64%.
The upcoming earnings release of Zscaler will be of great interest to investors. The company's upcoming EPS is projected at $0.58, signifying a 56.76% increase compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $506.69 million, indicating a 30.72% upward movement from the same quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.47 per share and revenue of $2.1 billion, indicating changes of +37.99% and +29.78%, respectively, compared to the previous year.
Investors should also take note of any recent adjustments to analyst estimates for Zscaler. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Right now, Zscaler possesses a Zacks Rank of #2 (Buy).
Looking at its valuation, Zscaler is holding a Forward P/E ratio of 91.28. This indicates a premium in contrast to its industry's Forward P/E of 24.93.
It is also worth noting that ZS currently has a PEG ratio of 2.47. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The average PEG ratio for the Internet - Services industry stood at 1.86 at the close of the market yesterday.
The Internet - Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 73, finds itself in the top 29% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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Zscaler, Inc. (ZS) : Free Stock Analysis Report
