Please. Plus500. Octahedron Capital Management L.P. Boosts Holdings in Zscaler, Inc. (NASDAQ:ZS), Zscaler (ZS) to Release Earnings on Thursday, Manchester Global Management UK Ltd Purchases New Position in Zscaler, Inc. (NASDAQ:ZS), Zscaler, Inc. (NASDAQ:ZS) Given Consensus Rating of "Moderate Buy" by Brokerages, Zscaler (NASDAQ:ZS) Price Target Cut to $165.00, Baird Maintains Zscaler (ZS) Outperform Recommendation, Looking At Zscaler's Recent Unusual Options Activity, Exos TFP Holdings LLC Makes New Investment in Zscaler, Inc. (NASDAQ:ZS), Zscaler (ZS) Gets a Buy from Robert W. Baird, Robert W. Baird Cuts Zscaler (NASDAQ:ZS) Price Target to $165.00, Tlwm Buys Shares of 2,271 Zscaler, Inc. (NASDAQ:ZS), Zscaler (ZS) to Release Quarterly Earnings on Thursday, AXQ Capital LP Takes Position in Zscaler, Inc. (NASDAQ:ZS), Zscaler stock surges on upbeat earnings preview, full-year forecast. Notice: Information contained herein is not and should not be construed as an offer, solicitation, or recommendation to buy or sell securities. That's shaping up to be materially higher than the 13% per year growth forecast for the broader industry. Gartner estimates that global cyber security and risk management spending be over $188 billion this year, an 11% increase versus a year ago. The May jobs 6/02/2023 Zscaler Zscaler outage causing heavy packet loss, connectivity issues 24-Year-Old Stock Trader Who Made $8 Million Shares Top 4 Indicators ET despite exceeding earnings estimates handily last night. Morgan Stanley conference earlier this year. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Since its price has surged higher, Zscaler may be sending strong sell signals at present with a price-to-sales (or "P/S") ratio of 14.1x, when you consider almost half of the companies in the Software industry in the United States have P/S ratios under 4.2x and even P/S lower than 2x aren't out of the ordinary. This chart compares the number of articles about this company in the last seven days compared with the average number of articles about this company on a typical week. It's argued the price-to-sales ratio is an inferior measure of value within certain industries, but it can be a powerful business sentiment indicator. So being able to do these 2 things is helping us actually do good business. Despite some risks, such as economic slowdown and competition, Zscaler's current valuation makes it an attractive investment opportunity. And yet, Wall Street was decidedly not happy with these numbers. ZS thinks it has a 6x upsell opportunity on ZIA and ZPA alone with existing customers. About 6 years ago, we started a team for business value assessment. Zscaler, Inc. (ZS) Latest Stock News & Headlines - Yahoo Finance For instance, we've identified 3 warning signs for Zscaler that you should be aware of. Okta Stock Has Been on a Tear. I am long all holdings of the Best of Breed portfolio. The second part is great, you got pipeline. Privacy Notice | Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. Please log in to your account or sign up in order to add this asset to your watchlist. But even so, the company beat expectations in the second quarter, promised to beat them again in Q3 -- and indeed, to keep on beating them all year long. What happened S hares of cybersecurity specialist Zscaler (NASDAQ: ZS) are falling today, down 10% as of 11 a.m. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. The cloud-native cybersecurity company reported quarterly earnings of 13 cents per share, which beat the estimate of 11 cents per share. Zscaler Stock Tumbles After Earnings. Visit a quote page and your recently viewed tickers will be displayed here. Zscaler is scheduled to report finalized Q3 financial results on June 1. Cyber interest is not going down. Invest better with The Motley Fool. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Members of Best Of Breed get exclusive access to our model portfolio. Sure, ZS might deliver stronger returns than that, but it would need to either outperform my already above-consensus estimates and/or trade at richer multiples. Finally, its Zscaler for IOT/OT leverages its platform to lower the risk of data loss and cyberattacks by providing zero trust security for connected IoT and OT devices. Presumably, analysts are worried that the latter two numbers don't quite match up with the former, and imply a slowdown in actual revenue growth going forward. Looking for a portfolio of ideas like this one? "Customers are not only gaining security advantages from our Zero Trust model but they are also reaping the benefits of faster innovation and economics from our global cloud, which is now processing more than 210 billion transactions per day," saidJay Chaudhry, chairman and CEO of Zscaler. Shifting to guidance, management forecast about $397 million in fiscal third-quarter sales. Already a. This segment is projected to grow 31% this year, according to Gartner. Zscaler Inc is down 6.89% from its previous closing price of $142.77. Even viral TikTok raccoons can't get enough of them. Meanwhile, the company expects full-year earnings of $1.52 to $1.53 on about $1.56 billion revenue and billings of $1.94 billion to $1.95 billion. Zscaler last reported a headcount of 4,975. Analyst Assessment: Several analyst firms lowered price targets on the stock following Zscaler's financial results: ZS Price Action: Zscaler has traded as low as $157.03 and as high as $376.11 over a 52-week period. Thats a lower multiple than what Palo Alto (PANW) was selling at when I looked at it at the end of April. Authors may own the stocks they discuss. Heading into fiscal Q2. Zscaler is a cloud security provider with a focus on zero trust network access (ZTNA), one of the fastest growing segment in the cybersecurity market. Zscaler said quarterly revenue increased 63% year-over-year to $255.56 million, which beat the $241.56 million estimate. Something went wrong while loading Watchlist. Zscaler stock reversed down on Wednesday after the cybersecurity firm reported earnings, revenue and billings for its fiscal first quarter that topped Wall Street targets. CI Investments Inc. Sells 66,755 Shares of Zscaler, Inc. (NASDAQ:ZS), Aigen Investment Management LP Decreases Stock Position in Zscaler, Inc. (NASDAQ:ZS), Tredje AP fonden Buys 51,434 Shares of Zscaler, Inc. (NASDAQ:ZS), Artisan Partners Limited Partnership Has $534.24 Million Stake in Zscaler, Inc. (NASDAQ:ZS), Midday movers: PacWest, Zscaler, Tyson Foods and more, Zscaler Appoints Syam Nair as Chief Technology Officer to Accelerate Innovation and Product Development, First Trust Advisors LP Has $198.95 Million Stock Holdings in Zscaler, Inc. (NASDAQ:ZS), Zscaler, Inc. Expected to Post Q3 2023 Earnings of ($0.43) Per Share (NASDAQ:ZS), Barclays Cuts Zscaler (NASDAQ:ZS) Price Target to $127.00, Why Zscaler, Snowflake, and Datadog Surged This Week, Zacks Research Analysts Lower Earnings Estimates for Zscaler, Inc. (NASDAQ:ZS), Barclays Trims Zscaler (NASDAQ:ZS) Target Price to $127.00, Skandinaviska Enskilda Banken AB publ Acquires 1,149 Shares of Zscaler, Inc. (NASDAQ:ZS), Zscaler's (ZS) "Maintains" Rating Reiterated at 888, Zscaler (NASDAQ:ZS) Price Target Raised to $120.00, Zscaler (NASDAQ:ZS) Price Target Increased to $148.00 by Analysts at Citigroup, Why Zscaler (ZS) Could Beat Earnings Estimates Again, Cognizant Technology Solutions News Today, Telefonaktiebolaget LM Ericsson (publ) News Today. The company has sustained 2 straight quarters of accelerated revenue growth, with a 63% growth rate that is higher than pandemic levels. Subscriber Agreement & Terms of Use | Upgrade to MarketBeat All Access to add more stocks to your watchlist. A 9% decline would be about $449.4 million, whereas the Street is expecting $448.6 million. Given where the rest of tech trades, I recommend avoiding the stock at current levels in favor of more attractive alternatives. Over the last year, Zscaler Inc has hit prices as high as $253.74 and as low as $99.64. See what's happening in the market right now with MarketBeat's real-time news feed. Get short term trading ideas from the MarketBeat Idea Engine. Is Zscaler (ZS) Likely to Surpass Q3 Earnings Estimates? The company has said that about 80% of its ZIA deals are Blue Coat replacement deals, and that there are still a lot of large companies still using this older technology, including some very large banks. (844) 978-6257. Year to date, Zscaler Inc's stock is down 67.18%. San Jose, Calif-based Zscaler (ZS) reported earnings after the market close on Tuesday. Simply Wall St has no position in any stocks mentioned. Privacy Policy & Terms of Use. There are better alternatives elsewhere. It's because of these 2 reasons, we see good demand. For the best MarketWatch.com experience, please update to a modern browser. Recognizing chart patterns is one key to the investment guidelines. This is closing in on its daily average trading volume of about 23 million shares. 326 E 8th St #105, Sioux Falls, SD 57103 Follow him on Twitter at: @wmwitkowski. 337927). SAN JOSE, Calif., June 01, 2023 (GLOBE NEWSWIRE) -- Zscaler, Inc. (Nasdaq: ZS), the leader in cloud security, today announced financial results for its third quarter of fiscal year 2023, ended April 30, 2023. ZS News Today | Why did Zscaler stock go up today? Turning to the outlook, the next three years should generate growth of 29% per annum as estimated by the analysts watching the company. Meanwhile, there are always new upstarts looking to disrupt current technology. What's Going On With Palo Alto, CrowdStrike And Zscaler Shares? Futures rose after a broad rally. Export data to Excel for your own analysis. Why Zscaler Stock Crashed 10% This Morning | The Motley Fool Similarly, full-year revenue guidance for $1.56 billion in sales exceeds Wall Street's target for the year. Both of these products are newer, but Workloads solutions has been gaining some nice traction. Organizations can also optimize its users end to end experiences through its Zscaler Digital Experience, or ZDX. The company then proceeded to promise another sales beat in Q3. We aim to bring you long-term focused analysis driven by fundamental data. ZS is a cybersecurity company which protects applications using its zero trust exchange. In the pre-cloud era, companies typically secured their property using perimeter defenses but that kind of defense does not work in the cloud era where applications can be accessed by any other application. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. ZS is lower by -$1.44 from the previous closing price of $135.48 on volume of 1,158,852 shares. After a difficult two years for the stock, Zscaler (NASDAQ:ZS) is now trading at a more attractive valuation, while the opportunity for the company remains bright. Leaderboard portfolio managers share tips for picking stocks and timing your trades. On the day-- or premarket, you're seeing that down by nearly 12%. Why Zscaler Stock Crashed 10% This Morning - MSN Get daily stock ideas from top-performing Wall Street analysts. Judging by the valuation, I suspect that investors expect the company to materially beat on those estimates. Overall, ZSs ability to upsell has shown through in its numbers, as it has consistently had over 125% net dollar retention. Based in San Francisco, his current focus is on the more exciting world of semiconductors, videogames and cybersecurity, when he's not churning out earnings coverage. As of Thursdays close, Zscalers stock is down 47% over the past 12 months, compared with a 9% loss by the S&P 500 index Zscaler earnings preview: what Wall Street is expecting ZS is richly valued based on estimates 3 years out, yet many other tech stocks are trading cheaply based on this year or even last years financial results. What is an MSSP and how does it help SMBs? - Zscaler The IBD Live team paid tribute to William ONeil and his legacy. Learn about the media coverage comparison. Simply Wall Street Pty Ltd (ACN 600 056 611), is a Corporate Authorised Representative (Authorised Representative Number: 467183) of Sanlam Private Wealth Pty Ltd (AFSL No. Zscaler (NASDAQ:ZS) is one of the tech stocks that leave me scratching my head. ZS still has plenty of room to grow, both adding new customers as well as through upselling to its existing customer base. The fact that ZS continues to trade at stretched multiples is understandable. Like other tech stocks, Zscaler is down nearly 40% from all-time highs. Have feedback on this article? No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It's good to see that Zscaler is outpacing expectations. Third Quarter Fiscal 2023 Financial Highlights. Zscaler Inc (ZS) stock is higher by 5.94% over the past week and gets a Bullish rating from InvestorsObserver Sentiment Indicator. , Get market updates, educational videos, webinars, and stock analysis. Portfolio results are unaudited and based on varying investment expiration dates. Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. Our daily ratings and market update email newsletter. The company's valuation climbed thanks to favorable coverage from analysts. The 2 things we do in that area that help us. It is possible that the ongoing war in Ukraine has led investors to expect increased spending on cybersecurity, but even so, current multiples appear quite stretched. BREAKING: Futures Rise With Jobs Report On Tap. Ticker symbol ZS, that's in focus this morning following an earnings report. My thesis on why cannabis stocks are a generational secular growth story. It's worth noting this also comes after AI stocks underwent a recent rally. It appears that shareholders are confident in the company's future revenues, which is propping up the P/S. Thank you for signing up! Zscaler Unusual Options Activity For May 30. Patrick T. Fallon | Bloomberg | Getty Images CrowdStrike shares closed down more than 14% on Wednesday, a day after the cybersecurity company reported third-quarter results that said new revenue. That increased demand for its web security gateways that inspect customers' data traffic for malware. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Find out whether Zscaler is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health. A 24-year-old stock trader who made over $8 million in 2 years shares the 4 indicators he uses as his guides to buy and sell. Learn More About A+ Investor Zscaler Inc's Stock Price as of Market Close As of February 16, 2023, 4:00 PM CST, Zscaler Inc's stock price was $132.93. Unlike other tech stocks, Zscaler is not trading at compelling valuations today. Buy the big winners of tomorrow at stupid cheap prices today. Yes, 3, 4 quarters ago, a CIO could get the deal done, more and more deals do go to CFO for approval now. Chewy.com Gets A Mouthful Of Profits: Shares Surge, More To Come, Okta, Inc: When Great Results Arent Good Enough, Opera Stock: The Fast-Rising Star of AI-Driven Web Experiences, Mullen Automotive - What's Good, What's Bad, and What's Downright Ugly, These Stocks Have Bottomed and Are Primed for Reversal, AI Helps Palantir Make a Move to the Upside. Futures rose after a broad rally. Zscaler Plunges As Earnings Top Views, But Size Of Billings Beat Disappoints, Stock Market Builds On Gains As AI Stocks Lead The Charge; Medical Stock Jumps, Dow Jones Rises After Key Economic Data; AI Stock Soars 23% On 'Dramatic Change' In Sentiment. ZDX allows an organization to isolate where in the network path an issue is happening and whether it is caused by a user's device, the internet or WiFi connection, or the service provider. How To Use The 10-Week Moving Average For Buying And Selling, How This IBD Tool Simplifies The Search For Top Stocks, Find Compelling Growth Stocks With IBD's Stock Of The Day, Chart Reading For Beginners: Nvidia, Amazon, Pinterest Reveal This Key Investing Skill, See IBD Stock Lists & Get Pass/Fail Ratings For All Your Stocks With IBD Digital. Back in January, Morgan Stanley downgraded Zscaler and other cybersecurity names in the believe that peak cybersecurity has passed and that investors must get more selective in the sector. Zscaler: Buy If You Are Tolerant To Short-Term Volatility Granted, the majority of today's gains still probably owe to Nvidia's powerful sales guidance given in its fiscal first-quarter 2024 . Zscaler's management expects to report 38% to 39% bookings growth for Q3, which is slower than its revenue growth. CRM, Why Zscaler, Snowflake, and Datadog Surged This Week, 2 Red-Hot Cybersecurity Stocks to Buy In May and Hold for Decades, Why Zscaler, Datadog, and Wix Stocks All Rallied Wednesday Morning, Better Cybersecurity Stock: Tenable vs. Zscaler, 2 High-Growth Cybersecurity Stocks to Buy in April 2023, If History Repeats, 1 Widely Owned Commodity Is Set to Skyrocket, Cathie Wood Says Software Is the Next Big AI Buying Opportunity -- And These 4 Stocks Could Skyrocket, If You're Not Making These 401(k) Moves, You're Making a Big Mistake, Prediction: 2 Top AI Growth Stocks That Will Be Worth More Than $1 Trillion by 2030, Join Over Half a Million Premium Members And Get More In-Depth Stock Guidance and Research, Motley Fool Issues Rare All In Buy Alert, Copyright, Trademark and Patent Information. For the current quarter ending in January, the company expects earnings of 11 cents a share amid higher investments in its sales force. Sentiment refers to the positivity or negativity of each headline according to our language processing algorithm. Analysts Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. AAP Stock Outlook. Although, it's not wise to just take the P/S at face value as there may be an explanation why it's so lofty. Meanwhile, its Posture Control solution helps address public cloud security issues by automatically identifying and remediating cloud service, application, and identity misconfigurations for assets deployed in public cloud infrastructure. At current prices, ZS is trading at 12x 2025e sales. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. Yet if ZS trades at those multiples, then that suggests the rest of the tech sector would have fully recovered as well, with far more upside than 100% over 3 years. Learn how you can make more money with IBD's investing tools, top-performing stock lists, and educational content. Much of Zscalers report mirrored that of Oktas: Reluctance of customers to close deals in the uncertain economic environment, longer times to close deals, and 90%-plus customer retention rates that are allowing the platforms to upsell to existing customers. VMware (VMW) to Report Q1 Earnings: What's in the Cards? Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situation or needs. Zscaler (ZS) Q3 2023 Earnings Call Transcript | The Motley Fool Treasury yields slid. Entering text into the input field will update the search result below. Julian Lin is a top ranked financial analyst. I want to make sure . Unfortunately, the gains of the last month did little to right the losses of the last year with the stock still down 15% over that time. Why Nvidia, C3.ai, and Qualcomm Stocks Keep Going Up Now why is that? Data coming in 30 minutes. Im ready for my golden years: Im 62. Monthly jobs data is driving large swings in U.S. stocks this year. Stock Market Today: Dow Down at Close As Traders Await Debt-Ceiling Vote earnings report, another cloud-software company this week that promised profitability and trimmed jobs, giving the stock its biggest boost since 2020. contact@marketbeat.com While other stocks in the tech sector are seeing their valuations get squashed, ZS has somehow managed to sustain a premium multiple that is still arguably too rich. Analysts had projected earnings of 12 cents a share. The stock is downtrodden and still 45% below its 52-week high, even after today's gains. Shares in the cybersecurity firm initially popped on the earnings release. It offers Zero Trust Exchange, Zscaler Client Connector, Zscaler Internet Access, Zscaler Private Access, Zscaler B2B, Zscaler Cloud Protection, and Zscaler Digital Experience. ZS News Today | Why did Zscaler stock go up today? - MarketBeat Seeking Alpha's Disclosure: Past performance is no guarantee of future results. Adding additional users or departments in an organization is also another way to boost net dollar retention. View the latest news, buy/sell ratings, SEC filings and insider transactions for your stocks. This, combined with the fact that Zscaler's reported profit was actually on an adjusted basis, and that earnings as calculated according to generally accepted accounting principles (GAAP) showed a $0.40-per-share loss for the quarter, may explain why analysts weren't quite as impressed by Zscaler's "earnings beat" as you might expect. At the same time, I see no reason for it to trade at a similar valuation to more legacy players. "The business value delivered by our Zero Trust security platform is continuing to drive customer adoption across all sectors globally . Zscaler Stock Reverses Down After Earnings, Guidance Top Estimates When looking at risk, a slowdown in the economy is one potential risk. That said, these are modest increases to guidance, in my opinion. Zscaler Stock Shoots Up on Boost to Revenue Outlook, Zscalers stock soars 20% as company raises its forecast far above expectations, Zscaler Shares Jump 20% on Upbeat FY23 Outlook. Heading into fiscal. In this space, ZS ranks very highly as the clear leader as measured by Gartner. investors.com IBD University | Welcome RESEARCH Zscaler Inc (ZS) NASDAQ $ 135.31 9.82 6.77% 3 Mil Get a Leaderboard Chart for ZS ? But overall, if you look at from revenue or sales point of view, you think of 2 things. While I expect the company to continue growing at rapid rates, the current stock price suggests that investors are counting on growth rates to remain at unsustainable levels. WDAY, Investors also can create watchlists, find companies nearing a buy point, or develop custom screens at IBD MarketSmith. Is this happening to you frequently? ZS stock had advanced 68% in 2021 just ahead of the Zscaler earnings report. These deals havent gone away and customers are taking longer to make decisions and requiring additional approvals.. CrowdStrike stock down on earnings, Morgan Stanley says buy the dip - CNBC OKTA Gears Up to Report Q1 Earnings: What's in the Cards. This year, the total cost of cybercrime is expected to reach an astounding $8 trillion. I am not receiving compensation for it (other than from Seeking Alpha). I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. Snowflake Inc (SNOW) Up 2.45% in Premarket Trading. While ZS is down nearly 40% from all-time highs, the stock remains nearly 300% higher than pre-pandemic levels. It does a good job. The Motley Fool has a disclosure policy. Shares of zero-trust cybersecurity specialistZscaler (ZS -0.29%) suddenly soared on Monday after reporting upbeat preliminary financial results for its fiscal third quarter of 2023 and raising full-year financial guidance. ZS notes that there are 20,000 companies with more than 2,000 employees, and that its currently only penetrated around 10% of this market. Zscaler Reports Third Quarter Fiscal 2023 Financial Results Generally hard times make demand soft. But even if Zscaler's slowing down, it's still moving mighty fast. The stock was down about 8% at 12:20 p.m.. that is still arguably too rich. My portfolio includes my highest conviction ideas that I think will absolutely crush the market over the next decade. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body. Learn More. Because that's where extra scrutiny comes in. Have Watchlists? What happened Shares of cybersecurity specialist Zscaler ( ZS 3.14%) are falling today, down 10% as of 11 a.m. Therefore, today's update does continue to point to a trend management talked about in Q2: Companies appear to be cautious and are perhaps deferring some spend on cybersecurity. Tech Is the New Haven, Say Analysts. If you have an ad-blocker enabled you may be blocked from proceeding. Portions of this content protected by US Patent numbers 7,865,496, 7,856,390, and 7,716,116. Cybersecurity is still a priority, but there is certainly more scrutiny across the board.

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