Zscaler has experienced a ~40% YTD selloff despite continued quarterly beat-and-raise performance and robust fundamentals. ZS maintains mid-20s revenue growth at a $3 billion+ scale, with no clear signs of AI-driven disruption to its cybersecurity business. The company is transitioning from seat-based to consumption-based pricing, positioning itself ahead of employment-driven demand shifts.
Zscaler (ZS) reported earnings 30 days ago. What's next for the stock?
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) 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.
ZS nears a 52-week low as FY27 guidance signals slower growth, but AI security bookings, platform gains and a lower P/S support holding.
Zscaler (NASDAQ: ZS | ZS Price Prediction) founder and CEO Jay Chaudhry used the company's latest earnings call to sharpen a thesis becoming the bull case for cybersecurity: autonomous AI agents will soon outnumber human users on corporate networks, and each needs security.
ZS is expanding security to protect AI agents as ARR and revenues rise 25% each, and AI Protect logs above $100M bookings in 12 months for AI agents.
The average of price targets set by Wall Street analysts indicates a potential upside of 25.3% in Zscaler (ZS). While the effectiveness of this highly sought-after metric is questionable, the positive trend in earnings estimate revisions might translate into an upside in the stock.
Zscaler (ZS) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, ZS broke out above the 50-day moving average, suggesting a short-term bullish trend.
I rate Zscaler a Strong Buy. The forward P/E appears elevated only because the company prioritises growth investment over short-term margin expansion. Generating a 36% free cash flow margin and operating at the "Rule of 62" already places Zscaler among the highest-quality compounders in software. Zscaler is a leader in Zero Trust cloud security, a category that has evolved from best practice to regulatory requirement in the US and EU, creating a structural tailwind.
Shares of Zscaler surged on Monday after Guggenheim upgraded the cybersecurity company to Buy from Neutral, arguing that the recent selloff has created an attractive entry point for investors despite ongoing concerns about growth. Zscaler shares climbed 10% to $154.11, extending a rebound that put the stock on track for its third consecutive daily gain.
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?