Some sunshine with a thunderstorm or two possible this afternoon. A few storms may be severe. High 83F. Winds WSW at 10 to 15 mph. Chance of rain 30%..
Tonight
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In the latest close session, Zscaler (ZS) was up +1.06% at $178.55. This move outpaced the S&P 500's daily loss of 0.32%. On the other hand, the Dow registered a loss of 0.34%, and the technology-centric Nasdaq decreased by 0.6%.
The cloud-based information security provider's shares have seen an increase of 24.58% over the last month, surpassing the Computer and Technology sector's gain of 0.32% and the S&P 500's gain of 2.46%.
Market participants will be closely following the financial results of Zscaler in its upcoming release. The company plans to announce its earnings on September 3, 2026. The company is predicted to post an EPS of $1.09, indicating a 22.47% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $877.19 million, up 21.96% from the year-ago period.
ZS's full-year Zacks Consensus Estimates are calling for earnings of $4.14 per share and revenue of $3.33 billion. These results would represent year-over-year changes of +26.22% and +24.61%, respectively.
Any recent changes to analyst estimates for Zscaler should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Over the past month, the Zacks Consensus EPS estimate has moved 3.1% higher. As of now, Zscaler holds a Zacks Rank of #3 (Hold).
Digging into valuation, Zscaler currently has a Forward P/E ratio of 38.58. This represents a discount compared to its industry average Forward P/E of 48.23.
One should further note that ZS currently holds a PEG ratio of 2.64. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Security was holding an average PEG ratio of 2.79 at yesterday's closing price.
The Security industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 44, placing it within the top 18% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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