The most recent trading session ended with Zscaler (ZS) standing at $201.63, reflecting a -1.49% shift from the previouse trading day's closing. This change lagged the S&P 500's 0.47% loss on the day. Elsewhere, the Dow saw a downswing of 0.31%, while the tech-heavy Nasdaq depreciated by 0.51%.
Coming into today, shares of the cloud-based information security provider had gained 13.45% in the past month. In that same time, the Computer and Technology sector lost 0.19%, while the S&P 500 gained 1.67%.
The investment community will be paying close attention to the earnings performance of Zscaler in its upcoming release. The company's upcoming EPS is projected at $0.69, signifying a 9.21% drop compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $634.07 million, indicating a 20.78% upward movement from the same quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.99 per share and revenue of $2.64 billion. These totals would mark changes of -6.27% and +21.58%, respectively, from last year.
Any recent changes to analyst estimates for Zscaler should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been a 34.4% rise in the Zacks Consensus EPS estimate. Zscaler currently has a Zacks Rank of #2 (Buy).
Looking at its valuation, Zscaler is holding a Forward P/E ratio of 68.49. This signifies a premium in comparison to the average Forward P/E of 23.85 for its industry.
We can also see that ZS currently has a PEG ratio of 5.08. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Internet - Services was holding an average PEG ratio of 1.75 at yesterday's closing price.
The Internet - Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 76, this industry ranks in the top 31% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.3% per year. So be sure to give these hand picked 7 your immediate attention.
See them now >>Zscaler, Inc. (ZS) : Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
