Subscribers to Schaeffer's Weekend Trader options recommendation service received this ZS commentary on Sunday night, along with a detailed options trade recommendation -- including complete entry and exit parameters.
Zscaler eyes MDR growth with Red Canary deal, aiming to build an AI-powered SOC and strengthen its SecOps portfolio.
Zscaler NASDAQ: ZS and CrowdStrike NASDAQ: CRWD are both buyable stocks supported by robust trends promising to drive a solid double-digit revenue CAGR for years. They both grow at an above-industry pace and are well-positioned in an industry projected to grow slower than the pace of threats it intends to prevent.
Recently, Zacks.com users have been paying close attention to Zscaler (ZS). This makes it worthwhile to examine what the stock has in store.
ZS trades at a steep 15.56X P/S as revenue growth slows, but AI-driven products and federal contracts may support long-term strength.
ZS expands Zero Trust Everywhere with strong customer growth and new cloud workload tools, fueling platform momentum.
Zscaler is on a strong path to reach the $5 billion in ARR. The emerging growth categories are one of the key driving forces in reaching this milestone. The company's revamped GTM strategy is another key enabler to drive ARR growth. Additionally, new initiatives, such as the Z-Flex purchasing program, are driving strong ARR growth. ZS is witnessing strong demand from enterprise customers. It has also been able to expand its customer base, providing further scope for upsell opportunities.
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's strong Q3 FY25 results, platform expansion, and growing enterprise adoption support my raised price target of $373, implying 23% upside. The company's Zero Trust Everywhere, Data Security, and Agentic Operations initiatives are driving deeper platform adoption and larger enterprise deals. The new Z-Flex purchasing program enhances customer flexibility and is already boosting bookings, positioning Zscaler well amid macroeconomic uncertainty.
There is a new commodity in the financial markets today, and that is any company in the technology sector that has managed to avoid today's heating geopolitical and economic conflicts, especially those caused by President Trump's recent trade tariffs.
Zacks.com users have recently been watching Zscaler (ZS) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.
Zscaler is uniquely positioned at the intersection of zero-trust security and enterprise AI adoption, leveraging massive data scale for superior threat detection and platform expansion. The company's cloud-native architecture, AI-driven capabilities, and expanding module suite create strong network effects, high switching costs, and robust cross-sell opportunities. Financial momentum is accelerating: 23% revenue growth, 25% billings growth, strong cash flow, and raised guidance support a sustainable mid-20% revenue CAGR through 2027.