Zscaler (ZS) Beats Stock Market Upswing: What Investors Need to Know

The latest trading session saw Zscaler (ZS) ending at $245, denoting a +1.46% adjustment from its last day's close. The stock's performance was ahead of the S&P 500's daily gain of 0.73%. Elsewhere, the Dow lost 0.64%, while the tech-heavy Nasdaq added 1.61%.The cloud-based information security provider's stock has climbed by 21.08% in the past month, exceeding the Computer and Technology sector's gain of 11.93% and the S&P 500's gain of 9.07%.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 May 29, 2025. The company is predicted to post an EPS of $0.75, indicating a 14.77% decline compared to the equivalent quarter last year. 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.For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.06 per share and a revenue of $2.65 billion, representing changes of -4.08% and +22.18%, respectively, from the prior year.Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Zscaler. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Within the past 30 days, our consensus EPS projection has moved 18.31% lower. At present, Zscaler boasts a Zacks Rank of #3 (Hold).Investors should also note Zscaler's current valuation metrics, including its Forward P/E ratio of 78.98. This expresses a premium compared to the average Forward P/E of 69.51 of its industry.Investors should also note that ZS has a PEG ratio of 5.72 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Security industry had an average PEG ratio of 3.1 as trading concluded yesterday.The Security industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 54, finds itself in the top 22% echelons of all 250+ industries.The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.To follow ZS in the coming trading sessions, be sure to utilize Zacks.com.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 ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks