Zscaler (ZS) Stock Sinks As Market Gains: What You Should Know
Zscaler (ZS) closed at $66.64 in the latest trading session, marking a -1.64% move from the prior day. This change lagged the S&P 500's 0.66% gain on the day. Elsewhere, the Dow gained 1.03%, while the tech-heavy Nasdaq added 0.46%.
Heading into today, shares of the cloud-based information security provider had gained 1.21% over the past month, lagging the Computer and Technology sector's gain of 5.08% and the S&P 500's gain of 3.97% in that time.
Investors will be hoping for strength from ZS as it approaches its next earnings release. On that day, ZS is projected to report earnings of $0.06 per share, which would represent year-over-year growth of 400%. Our most recent consensus estimate is calling for quarterly revenue of $74.54 million, up 51.63% from the year-ago period.
ZS's full-year Zacks Consensus Estimates are calling for earnings of $0.12 per share and revenue of $290.32 million. These results would represent year-over-year changes of +192.31% and +52.66%, respectively.
It is also important to note the recent changes to analyst estimates for ZS. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. ZS is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note ZS's current valuation metrics, including its Forward P/E ratio of 556.85. This valuation marks a premium compared to its industry's average Forward P/E of 25.52.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 196, putting it in the bottom 24% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.