Jim Cramer on Zscaler (ZS): "Seems to Be So Loved These Days"

We recently published a list of Jim Cramer’s Game Plan: 12 Stocks in Focus. In this article, we are going to take a look at where Zscaler, Inc. (NASDAQ:ZS) stands against other stocks that Jim Cramer discusses.

Cramer noted that Zscaler, Inc. (NASDAQ:ZS) stock is favored no matter “what this company reports” and said:

“Oh, and then there’s a… stock, Zscaler, cloud-based cybersecurity company that’s gotten into the habit of reporting upside surprises. It’s unnerving to me that it doesn’t seem to matter what this company reports. It seems to be so loved these days. That’s where the opportunity is.”

Zscaler, Inc. (NASDAQ:ZS) is a cloud security company that offers solutions for secure user and device access across digital environments. The company provides services that include tools for safe connections to external and internal applications, protection of data in public cloud settings, and management of identity and access privileges. On May 23, JPMorgan analyst Brian Essex increased the price target on ZS stock from $250 to $275 and maintained an Overweight rating.

In a research note, the firm pointed to rising valuations among peers as the reason for the adjustment. The firm expects Zscaler (NASDAQ:ZS) to report a strong quarter, supported by demand for secure access service edge and security service edge. As per the firm, the company is set to capture more market share in security service edge and continues to benefit from its position with large enterprise spending.

Overall, ZS ranks 11th on our list of stocks that Jim Cramer discusses. While we acknowledge the potential of ZS as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ZS and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.