Zscaler (ZS) Outpaces Stock Market Gains: What You Should Know
Zscaler (ZS) closed the most recent trading day at $278.17, moving +1.62% from the previous trading session.
Zscaler (ZS) closed the most recent trading day at $278.17, moving +1.62% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.43%.
Prior to today's trading, shares of the cloud-based information security provider had gained 16.03% over the past month. This has outpaced the Computer and Technology sector's gain of 4.49% and the S&P 500's gain of 2.56% in that time.
Wall Street will be looking for positivity from ZS as it approaches its next earnings report date. This is expected to be September 9, 2021. On that day, ZS is projected to report earnings of $0.09 per share, which would represent year-over-year growth of 80%. Our most recent consensus estimate is calling for quarterly revenue of $187.84 million, up 49.21% from the year-ago period.
Any recent changes to analyst estimates for ZS should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. ZS is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that ZS has a Forward P/E ratio of 490.75 right now. For comparison, its industry has an average Forward P/E of 27.75, which means ZS is trading at a premium to the group.
We can also see that ZS currently has a PEG ratio of 9.7. 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. ZS's industry had an average PEG ratio of 3.6 as of yesterday's close.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 167, putting it in the bottom 35% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Zscaler, Inc. (ZS): Free Stock Analysis Report
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