Zscaler (ZS) ended the recent trading session at $209.24, demonstrating a -1.55% swing from the preceding day's closing price. This move lagged the S&P 500's daily gain of 0.03%. Elsewhere, the Dow saw an upswing of 0.28%, while the tech-heavy Nasdaq depreciated by 0.36%.
Shares of the cloud-based information security provider have appreciated by 13.96% over the course of the past month, outperforming the Computer and Technology sector's gain of 2.31% and the S&P 500's gain of 4.19%.
Investors will be eagerly watching for the performance of Zscaler in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on March 5, 2025. 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.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.99 per share and a revenue of $2.64 billion, indicating changes of -6.27% and +21.58%, respectively, from the former year.
Investors might also notice recent changes to analyst estimates for Zscaler. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 34.4% higher. Currently, Zscaler is carrying a Zacks Rank of #2 (Buy).
With respect to valuation, Zscaler is currently being traded at a Forward P/E ratio of 71.11. This indicates a premium in contrast to its industry's Forward P/E of 23.65.
It's also important to note that ZS currently trades at a PEG ratio of 5.27. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Internet - Services industry held an average PEG ratio of 1.79.
The Internet - Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 78, finds itself in the top 32% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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