Zscaler (ZS) closed the latest trading day at $252.57, indicating a +0.43% change from the previous session's end. The stock's performance was ahead of the S&P 500's daily gain of 0.09%. Meanwhile, the Dow experienced a rise of 0.32%, and the technology-dominated Nasdaq saw an increase of 0.02%.
Heading into today, shares of the cloud-based information security provider had gained 25.07% over the past month, outpacing the Computer and Technology sector's gain of 18.89% and the S&P 500's gain of 13.05% in that time.
Market participants will be closely following the financial results of Zscaler in its upcoming release. The company plans to announce its earnings on May 29, 2025. In that report, analysts expect Zscaler to post earnings of $0.75 per share. This would mark a year-over-year decline of 14.77%. Meanwhile, the latest consensus estimate predicts the revenue to be $666.11 million, indicating a 20.41% increase compared to the same quarter of the previous year.
ZS's full-year Zacks Consensus Estimates are calling for earnings of $3.06 per share and revenue of $2.65 billion. These results would represent year-over-year changes of -4.08% and +22.18%, respectively.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Zscaler. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 18.31% lower within the past month. Zscaler is currently sporting a Zacks Rank of #3 (Hold).
In the context of valuation, Zscaler is at present trading with a Forward P/E ratio of 82.26. This represents a premium compared to its industry's average Forward P/E of 71.1.
It is also worth noting that ZS currently has a PEG ratio of 5.96. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Security stocks are, on average, holding a PEG ratio of 3.15 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 51, placing it within the top 21% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the 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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