In the latest close session, Zscaler (ZS) was down 3.42% at $118.05. This change lagged the S&P 500's 0.11% loss on the day. Meanwhile, the Dow lost 0.56%, and the Nasdaq, a tech-heavy index, added 0.35%.
Shares of the cloud-based information security provider witnessed a loss of 19.38% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 0.88%, and the S&P 500's gain of 0.51%.
Market participants will be closely following the financial results of Zscaler in its upcoming release. On that day, Zscaler is projected to report earnings of $1 per share, which would represent year-over-year growth of 19.05%. At the same time, our most recent consensus estimate is projecting a revenue of $834.48 million, reflecting a 23.07% rise from the equivalent quarter last year.
ZS's full-year Zacks Consensus Estimates are calling for earnings of $4 per share and revenue of $3.31 billion. These results would represent year-over-year changes of +21.95% and +23.9%, respectively.
Investors should also note any recent changes to analyst estimates for Zscaler. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been a 1.91% fall in the Zacks Consensus EPS estimate. Zscaler is currently a Zacks Rank #3 (Hold).
Digging into valuation, Zscaler currently has a Forward P/E ratio of 30.56. This expresses no noticeable deviation compared to the average Forward P/E of 30.56 of its industry.
It is also worth noting that ZS currently has a PEG ratio of 2.09. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The average PEG ratio for the Security industry stood at 2.44 at the close of the market yesterday.
The Security industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 82, placing it within the top 34% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Zscaler, Inc. (ZS): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).