Strength Seen in Zscaler (ZS): Can Its 3.1% Jump Turn into More Strength?

Zscaler ZS shares soared 3.1% in the last trading session to close at $180.06. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 16.3% loss over the past four weeks.The upswing was likely due to a recovery in the broader stock market after a massive sell-off last week following the announcement of a “reciprocal tariff” by President Donald Trump.This cloud-based information security provider is expected to post quarterly earnings of $0.75 per share in its upcoming report, which represents a year-over-year change of -14.8%. Revenues are expected to be $666.11 million, up 20.4% from the year-ago quarter.Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.For Zscaler, the consensus EPS estimate for the quarter has been revised 3.2% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on ZS going forward to see if this recent jump can turn into more strength down the road.The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>Zscaler belongs to the Zacks Security industry. Another stock from the same industry, Varonis Systems VRNS, closed the last trading session 0.9% lower at $38.03. Over the past month, VRNS has returned -5.8%.For Varonis, the consensus EPS estimate for the upcoming report has changed +1.6% over the past month to -$0.05. This represents a change of -66.7% from what the company reported a year ago. Varonis currently has a Zacks Rank of #3 (Hold).Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Zscaler, Inc. (ZS): Free Stock Analysis Report Varonis Systems, Inc. (VRNS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks