In the latest close session, Zscaler (ZS) was up +2.01% at $273.07. The stock outpaced the S&P 500's daily gain of 0.24%. Elsewhere, the Dow gained 0.32%, while the tech-heavy Nasdaq added 0.21%.
Heading into today, shares of the cloud-based information security provider had lost 7.72% over the past month, lagging the Computer and Technology sector's gain of 1.97% and the S&P 500's gain of 1.28%.
Investors will be eagerly watching for the performance of Zscaler in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on September 2, 2025. The company is predicted to post an EPS of $0.8, indicating a 9.09% decline compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $706.23 million, indicating a 19.12% upward movement from the same quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.19 per share and a revenue of $2.66 billion, representing changes of 0% and 0%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Zscaler. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. As of now, Zscaler holds a Zacks Rank of #3 (Hold).
In the context of valuation, Zscaler is at present trading with a Forward P/E ratio of 75.08. This valuation marks a premium compared to its industry average Forward P/E of 62.63.
Meanwhile, ZS's PEG ratio is currently 5.21. 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. Security stocks are, on average, holding a PEG ratio of 2.57 based on yesterday's closing prices.
The Security industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 86, placing it within the top 35% of over 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 ReportThis article originally published on Zacks Investment Research (zacks.com).
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