Zscaler (ZS) closed at $270.42 in the latest trading session, marking a -1.24% move from the prior day. This change lagged the S&P 500's 0.4% loss on the day. Elsewhere, the Dow saw a downswing of 0.34%, while the tech-heavy Nasdaq depreciated by 0.34%.
The stock of cloud-based information security provider has fallen by 3.38% in the past month, lagging the Computer and Technology sector's gain of 1.1% and the S&P 500's gain of 1.67%.
The investment community will be paying close attention to the earnings performance of Zscaler in its upcoming release. The company is slated to reveal its earnings on September 2, 2025. The company's upcoming EPS is projected at $0.8, signifying a 9.09% drop compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $706.19 million, up 19.11% from the prior-year quarter.
ZS's full-year Zacks Consensus Estimates are calling for earnings of $3.19 per share and revenue of $2.66 billion. These results would represent year-over-year changes of 0% and 0%, respectively.
It is also important to note the recent changes to analyst estimates for Zscaler. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
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.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Zscaler presently features a Zacks Rank of #3 (Hold).
Investors should also note Zscaler's current valuation metrics, including its Forward P/E ratio of 76.8. This indicates a premium in contrast to its industry's Forward P/E of 63.52.
Also, we should mention that ZS has a PEG ratio of 5.32. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As the market closed yesterday, the Security industry was having an average PEG ratio of 2.64.
The Security industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 81, which puts it in the top 33% of all 250+ industries.
The Zacks Industry Rank is ordered 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Zscaler, Inc. (ZS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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