Zscaler is a leader in Zero Trust and cloud security, evolving into an integrated AI-driven security platform through strategic acquisitions and partnerships. Revenue growth exceeds 20%, billings are accelerating, and free cash flow margins are among the industry's highest, justifying premium valuation multiples. My $350 price target (about 30% upside) is supported by robust growth, expanding margins, and strong SaaS model visibility, despite high current multiples.
Zscaler (ZS) has been one of the stocks most watched by Zacks.com users lately. So, it is worth exploring what lies ahead for the stock.
Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?
Zscaler (ZS) closed the most recent trading day at $270.42, moving 1.24% from the previous trading session.
Zscaler (ZS) concluded the recent trading session at $270.99, signifying a -2.44% move from its prior day's close.
Zscaler (ZS) has been one of the stocks most watched by Zacks.com users lately. So, it is worth exploring what lies ahead for the stock.
Zscaler (ZS) concluded the recent trading session at $272.5, signifying a -5.81% move from its prior day's close.
Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?
Zscaler (ZS) concluded the recent trading session at $280.27, signifying a -1.85% move from its prior day's close.
Zscaler (ZS) has received quite a bit of attention from Zacks.com users lately. Therefore, it is wise to be aware of the facts that can impact the stock's prospects.
Zscaler is a buy due to strong government cybersecurity spending tailwinds, especially from the US and Europe, amid rising global cyber threats. The company's Zero Trust Exchange platform positions it as a crucial partner for defense agencies, with robust adoption potential as cyber warfare escalates. Despite high valuation and lack of profitability, Zscaler's strong revenue and FCF growth, plus a solid cash position, support its aggressive growth targets.
Zscaler's sales momentum and billings acceleration set it apart in a challenging software market, justifying my reiterated 'Buy' rating despite valuation concerns. AI-driven demand and a large, underpenetrated TAM support ZS's premium valuation and continued growth, with new products and pricing models fueling adoption. Q3 results showed 23% revenue growth, strong billings acceleration, and robust large-customer expansion, highlighting the company's execution and resilience amid macro uncertainty.