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.
The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price.
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.
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.