Zscaler (ZS) Outpaces Stock Market Gains: What You Should Know

Zacks Equity Research

In the latest trading session, Zscaler (ZS) closed at $73.83, marking a +0.52% move from the previous day. This change outpaced the S&P 500's 0.16% gain on the day. Elsewhere, the Dow gained 0.26%, while the tech-heavy Nasdaq added 0.29%.

Coming into today, shares of the cloud-based information security provider had gained 9.69% in the past month. In that same time, the Computer and Technology sector lost 7.21%, while the S&P 500 lost 3.66%.

Wall Street will be looking for positivity from ZS as it approaches its next earnings report date. This is expected to be May 30, 2019. In that report, analysts expect ZS to post earnings of $0.01 per share. This would mark year-over-year growth of 150%. Meanwhile, our latest consensus estimate is calling for revenue of $74.54 million, up 51.63% from the prior-year quarter.

ZS's full-year Zacks Consensus Estimates are calling for earnings of $0.12 per share and revenue of $290.32 million. These results would represent year-over-year changes of +192.31% and +52.66%, respectively.

Investors should also note any recent changes to analyst estimates for ZS. Recent revisions tend to reflect the latest near-term business trends. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. ZS is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, ZS is holding a Forward P/E ratio of 603.7. For comparison, its industry has an average Forward P/E of 27.95, which means ZS is trading at a premium to the group.

The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 93, putting it in the top 37% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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