Zscaler (ZS) Stock Sinks As Market Gains: What You Should Know
Zscaler (ZS) closed the most recent trading day at $135.63, moving -0.08% from the previous trading session. This change lagged the S&P 500's 0.36% gain on the day. Meanwhile, the Dow lost 0.21%, and the Nasdaq, a tech-heavy index, added 0.76%.
Coming into today, shares of the cloud-based information security provider had gained 8.71% in the past month. In that same time, the Computer and Technology sector gained 10.24%, while the S&P 500 gained 6.9%.
Investors will be hoping for strength from ZS as it approaches its next earnings release, which is expected to be September 9, 2020. The company is expected to report EPS of $0.03, down 57.14% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $118.41 million, up 37.51% from the year-ago period.
Investors might also notice recent changes to analyst estimates for ZS. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.18% higher. ZS is holding a Zacks Rank of #2 (Buy) right now.
Valuation is also important, so investors should note that ZS has a Forward P/E ratio of 473.51 right now. This represents a premium compared to its industry's average Forward P/E of 39.73.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 105, putting it in the top 42% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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