The most recent trading session ended with Zscaler (ZS) standing at $210.42, reflecting a -0.26% shift from the previouse trading day's closing. This change lagged the S&P 500's daily gain of 0.3%. Meanwhile, the Dow gained 0.99%, and the Nasdaq, a tech-heavy index, added 0.27%.
Coming into today, shares of the cloud-based information security provider had gained 14.06% in the past month. In that same time, the Computer and Technology sector gained 0.27%, while the S&P 500 gained 2.1%.
Market participants will be closely following the financial results of Zscaler in its upcoming release. The company plans to announce its earnings on December 2, 2024. It is anticipated that the company will report an EPS of $0.63, marking a 5.97% fall compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $605.68 million, reflecting a 21.94% rise from the equivalent quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.87 per share and revenue of $2.61 billion, indicating changes of -10.03% and +20.57%, respectively, compared to the previous year.
Any recent changes to analyst estimates for Zscaler should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. As of now, Zscaler holds a Zacks Rank of #3 (Hold).
From a valuation perspective, Zscaler is currently exchanging hands at a Forward P/E ratio of 73.49. This signifies a premium in comparison to the average Forward P/E of 21.35 for its industry.
Investors should also note that ZS has a PEG ratio of 9.6 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Internet - Services industry was having an average PEG ratio of 2.02.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 41, which puts it in the top 17% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
