Core Viewpoint - Investors are shifting their focus from technology and large-cap stocks to sectors benefiting from AI-driven investments, leading to a rotation in market dynamics [1][2]. Sector Performance - Technology (XLK) and Consumer Discretionary (XLY) sectors remain negative year-to-date, while Financials (XLF) also show a decline [1]. - Energy stocks (XLE) have increased by 22% since the beginning of the year, driven by rising oil prices and demand, with Chevron (CVX) and ExxonMobil (XOM) shares up 20% and 22% respectively [2]. - Materials (XLB) and Industrial stocks (XLI) have risen by 15% and 14% respectively, attributed to AI infrastructure buildouts and reshoring trends [3]. - Defensive sectors like Consumer Staples (XLP) are gaining traction, with Walmart (WMT) reaching an all-time high [3]. Market Dynamics - The current market rotation is intensified by volatility, with portfolio rebalancing occurring as investors move from overvalued sectors to more stable areas [4]. - The Tech-Software Sector ETF (IGV) has seen a decline of 23% year-to-date due to fears surrounding AI's impact on traditional enterprise software roles [5]. - Cybersecurity firms have also faced declines, with shares of CrowdStrike (CRWD), Zscaler (ZS), and Cloudflare (NET) dropping significantly following new AI security tool announcements [6]. Economic Outlook - Profit growth and potential interest rate cuts by the Federal Reserve are expected to support a broadening stock market, with predictions of two to three rate cuts in 2026 [7]. - UBS strategists anticipate healthy profit growth across sectors, supported by a resilient US economy and ongoing easing cycles [7].

Group 1: Analyst Ratings and Price Targets - Bernstein analyst Peter Weed upgraded Zscaler, Inc. (NASDAQ:ZS) to Outperform from Market Perform with a price target of $228, citing valuation and calling Zscaler the "cheapest" cybersecurity vendor [1] - RBC Capital analyst Matthew Hedberg lowered his price target on Zscaler to $250 from $290 while maintaining an Outperform rating, reflecting negative investor sentiment toward software [2] Group 2: Company Developments - Zscaler announced the acquisition of SquareX to enhance its zero-trust capabilities in the browser, aiming to redefine browser security with lightweight extensions [3] - The acquisition closed on February 5, 2026, although financial terms were not disclosed [3] Group 3: Growth Projections - Growth for Zscaler is expected to fall below 20% by 2028 and decline through 15% within five years, with new customer additions anticipated at a 25%–35% slower pace than pre-2024 levels [1]

Zscaler ( ZS ) investors are undoubtedly going through a frustrating drawdown. In fact, the stock has almost been cut in half from its peak in November. However, many will be hoping that the cybersecurity company's upcoming earnings report willI objectively search for undervalued stocks of any size across a wide variety of industries using quantitative methods that I've thoroughly backtested for success. I believe the numbers are more important than the story (most of the time), as they tend to paint a more ...

Core Viewpoint - Zscaler's stock has experienced a significant decline, nearly halving since its peak in November, leading to investor frustration, but there is hope for recovery with the upcoming earnings report [1]. Company Summary - Zscaler is a cybersecurity company that is currently facing a challenging market environment, as indicated by the substantial drop in its stock price [1]. - The company is expected to release its earnings report soon, which could provide insights into its financial health and future prospects [1]. Investment Analysis - The analysis emphasizes the importance of quantitative methods in identifying undervalued stocks, suggesting that numerical data often provides a clearer picture of a company's potential than narrative accounts [1]. - The author has a long-term investment background, having been active in the market since 2013, and has utilized extensive research and reading to inform investment strategies [1].

编辑：Aeneas 定慧 刚刚，Anthropic发布代码安全工具Claude Code Security，直接让安全股一夜蒸发百亿市值！网络安全龙 头CrowdStrike的股价直接原地跌超6.5%，市场陷入极度恐慌：传统安全工具，从此全凉了？ 过年期间，AI圈接连不断的地震还没停。 昨天的Gemini 3.1 Pro刚刚亮相，紧接着就又来新炸弹了—— 刚刚，Anthropic发布了一个代码安全工具Claude Code Security，能高效扫描代码库漏洞并自动生成针对 性补丁，远超传统工具。 听起来，是不是只是一条平平无奇的技术更新？ Anthropic新杀器一发布，网络安全市场就尝到了血腥。 结果，消息一出，美股网络安全板块立刻集体跳水。 CrowdStrike、Cloudflare、Okta等安全股瞬间暴跌超5%，总市值蒸发逾100亿美元，一夜就蒸发了百亿 市值！ 仔细看，网络安全龙头CrowdStrike一度暴跌6.5%，Cloudflare重挫超6%，SailPoint大跌6.8%，Okta下挫 5.7%，Zscaler跌3.5%，Global X网络安全ETF下跌3.8%，年内累计跌幅扩大至 ...

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Core Insights - Zscaler, Inc. (ZS) is experiencing significant growth from its Z-Flex program, which allows customers to commit to spending levels while maintaining flexibility to adjust modules later, potentially driving future growth [1][2] Group 1: Z-Flex Program Performance - Z-Flex was introduced in Q3 of fiscal 2025 and generated over $175 million in total contract value bookings in Q1 of fiscal 2026, marking a 70% sequential increase, indicating strong customer interest in flexible licensing [2][11] - The program is enhancing relationships with existing clients, leading to increased annual spending as enterprises adopt multiple modules under Z-Flex, which is crucial for Zscaler's strategy focused on platform adoption across various security offerings [3][5] - Z-Flex is facilitating larger deal sizes, as customers are more inclined to commit to broader deployments knowing they can adjust product choices later, thus accelerating sales cycles [4][11] Group 2: Financial Outlook - The early success of the Z-Flex program suggests it could become a sustainable growth engine for Zscaler, with the Zacks Consensus Estimate projecting revenue growth of 23.2% for fiscal 2026 and 19.8% for fiscal 2027 [5] - Zscaler's shares have decreased by 14.8% over the past year, slightly better than the Zacks Security industry's decline of 15.6% [9] - The company trades at a forward price-to-sales ratio of 7.37, which is below the industry average of 10.01, indicating potential undervaluation [13] Group 3: Competitive Landscape - Zscaler faces competition from Palo Alto Networks, Inc. and CrowdStrike Holdings, Inc., both of which employ similar platform-driven growth strategies with flexible bundles to enhance customer spending [6][8] - Palo Alto Networks offers subscription pricing and bundled offerings that can provide 10-15% savings compared to purchasing products separately, encouraging broader platform adoption [7] - CrowdStrike's Falcon platform bundles and Falcon Flex licensing model allow customers to add modules without new procurement cycles, contributing to a significant year-over-year growth in annual recurring revenue [8]

Key Takeaways Qualys appears better positioned than Zscaler due to steadier growth and a lower valuation.ZS posted 26% Q1 revenue growth but faces gross margin pressure from newer AI-driven products.QLYS' Q4 revenues grew 10%. Qualys is expanding globally while trading at a lower forward sales multiple.Zscaler, Inc. (ZS) and Qualys, Inc. (QLYS) are two important players in cybersecurity, both helping enterprises protect their systems. Their products differ, but they compete in vulnerability management — a f ...

Group 1 - AI technology presents both opportunities and risks, as it can be utilized for beneficial purposes or malicious attacks [1] - The use of AI in cybersecurity allows for rapid identification of vulnerabilities, making it easier for hackers to exploit weaknesses in company defenses [2] - Companies are urged to enhance their security measures around AI, as existing protections can be implemented to mitigate risks [3] Group 2 - Investors are concerned that advanced AI could replace traditional software workloads, impacting the stock performance of companies in the software sector [4] - There is skepticism regarding the feasibility of switching critical systems, such as core banking, to AI-driven solutions due to the need for reliability and security [5] - The rise of agentic AI creates new opportunities for cybersecurity firms, as the number of AI agents will increase, necessitating enhanced protection measures [6]

Core Insights - Analysts from Wedbush see significant potential gains for cybersecurity stocks, particularly Palo Alto Networks, CrowdStrike, and ZScaler, as demand for cybersecurity services is expected to rise due to increasing AI-related risks [1][1] Group 1: Company Analysis - CrowdStrike is regarded as the "gold standard of cybersecurity" despite a 13% decline in its stock year-to-date, with a price target of $600 indicating nearly 50% upside from its recent level around $408 [1][1] - ZScaler is identified as a "premier name" in the cybersecurity space, with a strong product pipeline and AI strategy, and analysts project its stock could double to $350 in the next 12 months [1][1] - Palo Alto Networks is set to report earnings soon and has improved its value proposition through recent acquisitions, with a price target of $225 suggesting a 37% increase from its recent stock level [1][1] Group 2: Market Context - The cybersecurity sector is viewed as undervalued by investors, with analysts suggesting that the industry's growth opportunities are being underestimated amid broader market losses in software stocks [1][1] - The upcoming earnings reports for ZScaler and CrowdStrike are anticipated to provide further insights into the companies' performances and market positions [1][1]