Zscaler: Due For A Rebound In 2025
I'm reiterating my buy rating on Zscaler with an updated price target of $208 for the company, based on 9.5x EV/FY26 revenue. The stock has slid ~15% over the past 12 months, putting Zscaler at only a slight premium to software industry heavyweights like Salesforce despite Zscaler's superior growth profile. Longer term, Zscaler continues to enjoy secular tailwinds in cloud adoption that are allowing it to gain market share over legacy cybersecurity incumbents.
Zscaler: The Next Long-Term Winner In Cybersecurity
Amidst a frothy tech market, Zscaler is curiously performing weakly. I expect the company to achieve GAAP profitability on a sustainable basis some time this year. Management's guidance suggests billings growth acceleration in the second half, with a full-year revenue growth forecast of 21.8%.
Zscaler Won't Remain Cheap For Too Long
Zscaler's Q1 FY25 earnings showed 26% YoY revenue growth and 48% YoY earnings growth, beating estimates and leading to an upward revision in FY25 guidance. The company is expanding its AI product portfolio, with ARR from emerging solutions growing twice as fast as core products as a result of significant customer adoption. Despite potential margin pressures from sales rep hiring pace, Zscaler's enterprise momentum, product innovation, and Rule of 40 performance support a "buy" rating with a $221 price target.
Why Is Zscaler (ZS) Down 9.2% Since Last Earnings Report?
Zscaler (ZS) reported earnings 30 days ago. What's next for the stock?
Is It Worth Investing in Zscaler (ZS) Based on Wall Street's Bullish Views?
When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?
Is Most-Watched Stock Zscaler, Inc. (ZS) Worth Betting on Now?
Recently, Zacks.com users have been paying close attention to Zscaler (ZS). This makes it worthwhile to examine what the stock has in store.
Zscaler Declines 16% YTD: Will the Stock Make a Turnaround in 2025?
ZS' 16% YTD dip offers a buying opportunity with strong fundamentals, market leadership and promising growth in 2025.
Zscaler, Inc. (ZS) is Attracting Investor Attention: Here is What You Should Know
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.
Is Zscaler (ZS) a Buy as Wall Street Analysts Look Optimistic?
When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?
Surging Earnings Estimates Signal Upside for Zscaler (ZS) Stock
Zscaler (ZS) shares have started gaining and might continue moving higher in the near term, as indicated by solid earnings estimate revisions.
Zscaler (ZS) Recently Broke Out Above the 20-Day Moving Average
After reaching an important support level, Zscaler (ZS) could be a good stock pick from a technical perspective. ZS surpassed resistance at the 20-day moving average, suggesting a short-term bullish trend.
Zscaler, Inc. (ZS) Is a Trending Stock: Facts to Know Before Betting on It
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.
