In the latest close session, Zscaler (ZS) was up +1.7% at $170.18. This move outpaced the S&P 500's daily gain of 0.47%. At the same time, the Dow added 0.04%, and the tech-heavy Nasdaq gained 0.9%.
Coming into today, shares of the cloud-based information security provider had lost 22.79% in the past month. In that same time, the Computer and Technology sector lost 1.96%, while the S&P 500 lost 0.16%.
The investment community will be closely monitoring the performance of Zscaler in its forthcoming earnings report. The company is scheduled to release its earnings on February 26, 2026. The company is predicted to post an EPS of $0.89, indicating a 14.1% growth compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $798 million, showing a 23.17% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $3.82 per share and revenue of $3.29 billion, which would represent changes of +16.46% and +23.17%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Zscaler. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 818.75% higher. Currently, Zscaler is carrying a Zacks Rank of #3 (Hold).
Looking at valuation, Zscaler is presently trading at a Forward P/E ratio of 43.82. This denotes a premium relative to the industry average Forward P/E of 42.66.
Meanwhile, ZS's PEG ratio is currently 2.4. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Security was holding an average PEG ratio of 2.46 at yesterday's closing price.
The Security industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 175, which puts it in the bottom 29% 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.
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Zscaler, Inc. (ZS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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