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. Learn more about why Weekend Trader is one of our most popular options trading services.Software stock Zscaler Inc (NASDAQ:ZS) has seen a nice continuation of its rally since a late-May positive post-earnings performance. The stock battled the $304 area for more than two weeks in June, which p ...

Key Takeaways ZS plans to close its Red Canary acquisition in August to expand into MDR and threat intelligence. Red Canary's MDR expertise and 99.6% detection accuracy align with ZS' AI-driven SecOps strategy. SecOps ACV grew 120% in Q3 FY25, setting the stage for MDR to become a major growth pillar.Zscaler (ZS) is anticipated to close the pending acquisition of Red Canary in August 2025. Announced on May 27, the acquisition aims to accelerate the company’s push into Managed Detection and Response (MDR) ...

Core Insights - Zscaler and CrowdStrike are both considered buyable stocks with strong growth potential, supported by trends indicating a solid double-digit revenue CAGR for years to come [1][2] - The cybersecurity market is expected to grow at a 9% CAGR, while cyber threats are projected to drive a 15% CAGR, indicating a disparity between market growth and the threats it aims to mitigate [2] - Zscaler is identified as the better buy for 2025 due to favorable market dynamics, while CrowdStrike is expected to face a pullback, presenting a more attractive entry point later [3][2] Company Analysis - Zscaler's stock is on an upward trajectory, with potential for a double-digit increase this year and next, driven by robust analyst trends and price target increases [3][7] - CrowdStrike's stock is currently above its comparable highs, with analysts showing a more cautious sentiment, reflected in an increasing number of Sell and Hold ratings [4][5] - Zscaler's price action is bullish, with a strong rally in Q2 and indications of further growth, potentially advancing by another $150 [11][12] Analyst Sentiment - Analysts have shown a more positive outlook for Zscaler, with numerous price target increases and a firmer Moderate Buy rating, while CrowdStrike has seen downgrades and a cautious tone [7][4] - The consensus price target for Zscaler is positioned well above the broad consensus, nearing an all-time high of $385 [8] - CrowdStrike's valuation is considered high at over 55 times the 2030 EPS outlook, which may limit its immediate growth potential [5]

来源 | 英为财情Investing 以下文章来源于英为财情Investing ，作者Jesse Cohen 英为财情Investing . 全球第五大财经门户网站Investing.com中国官方微信，提供全球各国海量金融资讯和实时行情数据，包 括股票股指、外汇、期货、基金、债券、加密货币等。关注全球金融市场动态的投资者千万不可错过。 纳指近期一路攀升，在投资气氛向好、科技创新及整体经济环境利好等多重因素推动下，接近历 史高位。 在 这 轮 升 市 中 ， 云 端 安 全 及 基 建 领 域 的 两 大 龙 头 企 业 Cloudflare (NYSE:NET) 和 Zscaler (NASDAQ:ZS) 今年以来表现亮丽，股价已接近历史高位。 让我们来分析这些股票为何能突破新高，以及它们未来的发展前景。 C l o u d f l a r e ： 乘 数 字 转 型 东 风 Cloudflare 在网络基建、云端安全及边缘运算方面占尽优势，其股价在2025年表现亮丽，由年初 至今已升约73%。该股周二收报186.43美元，与2021年11月18日创下的221.64美元历史高位相 比，只相差15.8%。 今 ...

Core Insights - Zscaler has launched Zscaler Cellular, a Zero Trust solution for IoT and OT devices that utilizes a cellular SIM card for secure connectivity without the need for additional software or VPNs [1][2][5] - The solution provides resilient connectivity by allowing devices to connect to any cellular network globally while isolating each device to eliminate the attack surface [1][2] - Zscaler Cellular addresses the limitations of traditional security models, which are inadequate for the mobile and distributed nature of modern enterprises [2] Company Developments - Zscaler Cellular is set to be available globally in August 2025 and is already being utilized by organizations such as Sandvik and Maverick Transportation [5] - The company partners with leading telecommunications firms to enhance Zero Trust security for cellular-connected devices, ensuring scalable and seamless connectivity [4] - Zscaler's Zero Trust Exchange platform is designed to protect thousands of customers from cyber threats by securely connecting users, devices, and applications [6][7] Industry Context - The introduction of Zscaler Cellular represents a significant advancement in IoT and mobile security, addressing longstanding visibility and control gaps in enterprise environments [5] - The solution is positioned to facilitate secure digital transformation at scale, leveraging Zero Trust principles across global cellular networks [4]

Core Insights - CyberArk Software (CYBR) and Zscaler (ZS) are significant players in the cybersecurity sector, focusing on different aspects of security, with CyberArk specializing in privileged access management and identity security, while Zscaler excels in secure access service edge and cloud security [2] - The cybersecurity market is expected to grow at a CAGR of 12.63% from 2025 to 2030, driven by advanced attacks and the proliferation of AI [3] CyberArk Stock Analysis - CyberArk is witnessing a shift in identity security, with machine identities now outnumbering human identities at a ratio of over 80 to 1, up from 45 to 1 a year ago [5] - The company is innovating with AI-based products like Secure AI Agents and CORA AI, enhancing its identity security platform [6] - CyberArk's acquisitions of Zilla Security and Venafi have bolstered its expertise in identity governance and machine identity, contributing to recurring revenues and market share [7] - The Zacks Consensus Estimate predicts revenue growth rates of 31% for 2025 and 19% for 2026, with bottom line growth rates of 26.4% and 25% respectively [8] Zscaler Stock Analysis - Zscaler is implementing strategies such as Zero Trust Everywhere and agentic SecOps to leverage the growing cybersecurity market [11] - The company reported over 210 Zero Trust Everywhere enterprises in Q3 of fiscal 2025, marking a sequential growth of 60% [12] - Zscaler faces challenges with rising sales and marketing (S&M) and research and development (R&D) expenses, impacting near-term profitability [13] - The company's fiscal 2026 earnings are projected at $3.08, indicating a year-over-year decline of 3.5% [14] Performance and Valuation Comparison - Year-to-date, CyberArk shares have increased by 19.6%, while Zscaler shares have surged by 74.4% [16] - CyberArk is trading at a forward sales multiple of 13.6X, compared to Zscaler's 6.65X, reflecting higher growth expectations for CyberArk despite appearing pricier [17] Conclusion - CyberArk is positioned for robust growth through acquisitions and innovation in identity and AI security, while Zscaler is facing near-term challenges with rising operating expenses [18] - CyberArk holds a Zacks Rank 2 (Buy), indicating a stronger investment case compared to Zscaler, which has a Zacks Rank 3 (Hold) [19]

Core Insights - Zscaler (ZS) reported a 23% year-over-year revenue increase to $678 million for Q3 of fiscal 2025, but experienced a slight decline in non-GAAP gross margins to 80.3%, down from 81.4% a year ago, reflecting a 110-basis point contraction [1][11] Revenue and Growth - The company achieved a revenue growth of 24% and a free cash flow margin of 28% year-to-date, resulting in a combined score of 52%, known as the Rule of 52, marking the 21st consecutive quarter of exceeding the Rule of 40 benchmark [5][11] Margin Dynamics - The decline in gross margins is attributed to the rollout of new products aimed at quickly gaining market share rather than focusing on high margins initially. Management plans to improve margins once these products reach scale [2][6] - Zscaler's gross margin is projected to be 80% for Q4 of fiscal 2025, indicating a sequential decline of 30 basis points [6] Product Development - Recent introductions of fast-growing modules under categories like Zero Trust Everywhere and Data Security Everywhere are attracting large deals and expanding annual recurring revenue (ARR), although they are not yet margin-optimized [3][4] - The Z-Flex program, which offers flexible purchasing options, has contributed over $65 million in total contract value in Q3, but often bundles lower-margin modules, complicating near-term margin stability [4] Competitive Landscape - Competitors like CrowdStrike and Okta are also evolving their platforms to meet enterprise security demands, with CrowdStrike enhancing its identity security platform using AI solutions, and Okta focusing on identity and access management with AI for real-time detection of identity attacks [7][8] Valuation and Estimates - Zscaler's shares have increased by 74.4% year-to-date, outperforming the Security industry's growth of 22.1% [9] - The company trades at a forward price-to-sales ratio of 15.32X, higher than the industry average of 14.67X [12] - Earnings estimates for fiscal 2025 imply a year-over-year decline of 0.31%, while fiscal 2026 estimates suggest a growth of 12.01%, with upward revisions in the past 60 and 30 days respectively [15]

Core Viewpoint - Zscaler, Inc. is a leading player in the cybersecurity sector, but its high price-to-sales (P/S) multiple of 15.56X raises concerns about its valuation amid slowing growth rates [1][6]. Financial Performance - In Q3 FY25, Zscaler reported a year-over-year revenue growth of 22.6%, a decline from the 30% range in FY24 and 40% in FY23 [3][4]. - The revenue growth forecast for FY25 is expected to be around 22.7%, indicating a continued slowdown [4]. - The Zacks Consensus Estimate for Zscaler's FY25 earnings suggests a year-over-year decline of 0.31% [7]. Competitive Landscape - Zscaler faces increasing competition from established cybersecurity firms such as Palo Alto Networks, CyberArk, and CrowdStrike, which are investing heavily in innovative cybersecurity solutions [5][6]. - The company must maintain high spending on R&D to stay competitive and innovate in the market [5][6]. Growth Initiatives - Zscaler's New Growth Categories, which include Zero Trust Everywhere and Agentic Operations, reached approximately $1 billion in annual recurring revenues (ARR) [10]. - The company has successfully implemented its Zero Trust Exchange, gaining over 210 adoptions and achieving 60% quarter-over-quarter growth in Q3 FY25 [9]. - Zscaler's total ARR reached $2.9 billion in Q3 FY25 [10]. Strategic Partnerships and Innovations - Zscaler has launched new solutions like Asset Exposure Management and partnered with SAP to integrate its services within SAP's RISE framework [11]. - The company is enhancing its offerings with AI technologies through partnerships with NVIDIA and CrowdStrike [12]. Government Sector Expansion - Zscaler is expanding its GovCloud solutions and has enabled numerous government agencies to utilize its products, serving 14 out of 15 U.S. cabinet-level agencies [14][15]. - The inclusion in Amazon Web Services' Internet Control Message Protocol enhances Zscaler's accessibility to U.S. federal agencies [15]. Market Performance - Zscaler's share price has surged 74% year-to-date, outperforming the Zacks Security Industry and its peers [16].

Core Viewpoint - Zscaler, Inc. has announced a private offering of $1.5 billion in convertible senior notes due 2028, with an option for initial purchasers to buy an additional $225 million, expected to close on July 3, 2025 [1][3]. Group 1: Offering Details - The notes will be senior unsecured obligations with a maturity date of July 15, 2028, and will not bear regular interest [2]. - The initial conversion rate is set at 2.2752 shares per $1,000 principal amount, equating to a conversion price of approximately $439.52 per share, representing a 40% premium over the stock's closing price on June 30, 2025 [2]. - Zscaler estimates net proceeds from the offering to be around $1.48 billion, or approximately $1.70 billion if the additional notes option is fully exercised [3]. Group 2: Use of Proceeds - Zscaler plans to allocate $171 million of the net proceeds to cover costs associated with capped call transactions, with the remainder intended for general corporate purposes, including working capital and potential acquisitions [3]. Group 3: Capped Call Transactions - Zscaler has entered into capped call transactions to mitigate potential dilution from the notes, with an initial cap price of $784.85 per share, a 150% premium over the stock's closing price on June 30, 2025 [4]. - The capped call transactions are designed to reduce dilution upon conversion of the notes and offset any cash payments exceeding the principal amount of converted notes [4]. Group 4: Market Activity - The option counterparties may engage in purchasing Zscaler's common stock or entering into derivative transactions, which could influence the market price of the stock and the notes [5][6].

Core Viewpoint - Zscaler, Inc. plans to offer $1.5 billion in convertible senior notes due 2028, with an option for initial purchasers to buy an additional $225 million, subject to market conditions [1][2]. Group 1: Offering Details - The notes will be senior unsecured obligations, maturing on July 15, 2028, and will accrue interest payable semiannually [2]. - The notes can be converted into cash, shares of Zscaler's common stock, or a combination of both at the company's discretion [2]. - The specific terms, including interest rate and conversion rate, will be determined at the time of pricing [2]. Group 2: Use of Proceeds - A portion of the net proceeds will be used to cover costs associated with capped call transactions, while the remainder will be allocated for general corporate purposes, including working capital and potential acquisitions [3]. Group 3: Capped Call Transactions - Zscaler expects to enter into capped call transactions to mitigate potential dilution of its common stock upon conversion of the notes [4]. - These transactions will cover the number of shares underlying the notes and are subject to anti-dilution adjustments [4]. - If the initial purchasers exercise their option for additional notes, Zscaler will enter into further capped call transactions [4]. Group 4: Market Impact - The option counterparties may engage in purchasing Zscaler's common stock or derivatives, which could influence the market price of the stock and the notes [5][6]. - This activity may affect the conversion ability of noteholders and the value of shares received upon conversion [6]. Group 5: Regulatory Compliance - The notes will be offered to qualified institutional buyers under Rule 144A of the Securities Act, and neither the notes nor the shares have been registered under the Securities Act [7].