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Here's Why Zscaler (ZS) Fell More Than Broader Market
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Zscaler (ZS - Free Report) closed the latest trading day at $188.76, indicating a -1.46% change from the previous session's end. The stock's change was less than the S&P 500's daily loss of 0.02%. Elsewhere, the Dow gained 0.38%, while the tech-heavy Nasdaq added 0.04%.
Prior to today's trading, shares of the cloud-based information security provider had gained 13.67% over the past month. This has outpaced the Computer and Technology sector's gain of 4.44% and the S&P 500's gain of 3.77% in that time.
Investors will be eagerly watching for the performance of Zscaler in its upcoming earnings disclosure. The company is expected to report EPS of $0.63, down 5.97% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $605.68 million, indicating a 21.94% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $2.87 per share and revenue of $2.61 billion, which would represent changes of -10.03% and +20.57%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Zscaler. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 2.92% decrease. As of now, Zscaler holds a Zacks Rank of #4 (Sell).
Investors should also note Zscaler's current valuation metrics, including its Forward P/E ratio of 66.73. For comparison, its industry has an average Forward P/E of 37.89, which means Zscaler is trading at a premium to the group.
One should further note that ZS currently holds a PEG ratio of 8.72. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. ZS's industry had an average PEG ratio of 2.28 as of yesterday's close.
The Internet - Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 93, placing it within the top 37% of over 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Here's Why Zscaler (ZS) Fell More Than Broader Market
Zscaler (ZS - Free Report) closed the latest trading day at $188.76, indicating a -1.46% change from the previous session's end. The stock's change was less than the S&P 500's daily loss of 0.02%. Elsewhere, the Dow gained 0.38%, while the tech-heavy Nasdaq added 0.04%.
Prior to today's trading, shares of the cloud-based information security provider had gained 13.67% over the past month. This has outpaced the Computer and Technology sector's gain of 4.44% and the S&P 500's gain of 3.77% in that time.
Investors will be eagerly watching for the performance of Zscaler in its upcoming earnings disclosure. The company is expected to report EPS of $0.63, down 5.97% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $605.68 million, indicating a 21.94% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $2.87 per share and revenue of $2.61 billion, which would represent changes of -10.03% and +20.57%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Zscaler. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 2.92% decrease. As of now, Zscaler holds a Zacks Rank of #4 (Sell).
Investors should also note Zscaler's current valuation metrics, including its Forward P/E ratio of 66.73. For comparison, its industry has an average Forward P/E of 37.89, which means Zscaler is trading at a premium to the group.
One should further note that ZS currently holds a PEG ratio of 8.72. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. ZS's industry had an average PEG ratio of 2.28 as of yesterday's close.
The Internet - Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 93, placing it within the top 37% of over 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.