Core Insights - Zscaler Inc is set to report its fiscal first-quarter results on December 2, with consensus estimates of earnings at 63 cents per share and revenue at $605.7 million, indicating a 6% year-over-year decrease in earnings and a 21.9% year-over-year increase in revenue [1] Stock Performance - As of the latest update, Zscaler's stock was down 3.2% at $203.55, having experienced significant pullbacks in October but finding support at the 70-day moving average around the $180 level [2] - The stock has shown a year-to-date deficit of 8.5%, although it has recovered since the October lows [2] Historical Trends - Historically, Zscaler's stock tends to decline after earnings reports, with five out of the last eight sessions finishing lower, including an 18.6% drop in September [3] - The average stock movement post-earnings over the last eight quarters has been 8.4%, but options markets are currently pricing in a larger-than-usual swing of 10.9% for the upcoming report [3] Analyst Ratings - Ahead of the earnings report, BTIG has raised its target price for Zscaler from $205 to $238, representing a nearly 17% premium over the current stock price [4] - The stock's call/put volume ratio stands at 2.48, placing it in the 92nd percentile of annual readings, indicating strong bullish sentiment [4]

Zscaler (ZS) is scheduled to report first-quarter fiscal 2025 results on Dec. 2, after market close.For the first quarter, Zscaler projects total revenues to be between $604 million and $606 million. The Zacks Consensus Estimate is pegged at $605.7 million, which indicates growth of 21.9% from the year-ago quarter's level.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.Zscaler anticipates non-GAAP earnings per share (EPS) to be between 62 cents and 63 cents. The Zacks Consensus Esti ...

Wall Street analysts forecast that Zscaler (ZS) will report quarterly earnings of $0.63 per share in its upcoming release, pointing to a year-over-year decline of 6%. It is anticipated that revenues will amount to $605.68 million, exhibiting an increase of 21.9% compared to the year-ago quarter.Over the last 30 days, there has been no revision in the consensus EPS estimate for the quarter. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this tim ...

Company Overview - Zscaler's stock closed at $210.42, reflecting a -0.26% change from the previous trading day's closing, underperforming the S&P 500's daily gain of 0.3% [1] - Over the past month, Zscaler's shares have increased by 14.06%, while the Computer and Technology sector gained 0.27% and the S&P 500 gained 2.1% [1] Upcoming Financial Results - Zscaler is set to announce its earnings on December 2, 2024, with an anticipated EPS of $0.63, representing a 5.97% decline compared to the same quarter last year [2] - The consensus estimate projects revenue of $605.68 million, indicating a 21.94% increase from the equivalent quarter last year [2] Annual Forecast - For the entire year, Zacks Consensus Estimates forecast earnings of $2.87 per share and revenue of $2.61 billion, reflecting changes of -10.03% and +20.57%, respectively, compared to the previous year [3] - Recent changes to analyst estimates for Zscaler suggest shifting dynamics in short-term business patterns, with positive revisions indicating analyst optimism about the company's business and profitability [3] Valuation Metrics - Zscaler currently has a Forward P/E ratio of 73.49, which is significantly higher than the industry average Forward P/E of 21.35 [6] - The company has a PEG ratio of 9.6, compared to the Internet - Services industry's average PEG ratio of 2.02 [6] Industry Context - The Internet - Services industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 41, placing it in the top 17% of over 250 industries [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

Group 1 - The company management has indicated expectations of continued net losses in the foreseeable future, raising concerns among investors about the business's competitive offerings and economic moat [1] - Investors are left questioning the sustainability of the company's business model given the anticipated losses [1] Group 2 - There is no specific financial data or performance metrics provided in the documents to assess the company's current situation or future outlook [2] - The articles emphasize that past performance does not guarantee future results, highlighting the uncertainty in investment decisions related to the company [2]

I'm an investment analyst with several years of clinical experience and a Master of Business Administration, now expanding my focus beyond biotech and healthcare into a range of sectors. I've had the privilege of sharing my insights on Seeking Alpha since 2017. Outside of spending time with my family, it is my favorite thing to do. My work emphasizes financial modeling techniques, such as Discounted Cash Flow (DCF) analysis, to uncover hidden assumptions within stock valuations across multiple industries. B ...

The most recent trading session ended with Zscaler (ZS) standing at $183.93, reflecting a +1.61% shift from the previouse trading day's closing. This move outpaced the S&P 500's daily gain of 0.22%. Elsewhere, the Dow lost 0.33%, while the tech-heavy Nasdaq added 0.76%.Coming into today, shares of the cloud-based information security provider had gained 5.39% in the past month. In that same time, the Computer and Technology sector gained 2.29%, while the S&P 500 gained 1.47%.The investment community will be ...

Zscaler (ZS) closed the latest trading day at $188.76, indicating a -1.46% change from the previous session's end. The stock's change was less than the S&P 500's daily loss of 0.02%. Elsewhere, the Dow gained 0.38%, while the tech-heavy Nasdaq added 0.04%. Prior to today's trading, shares of the cloud-based information security provider had gained 13.67% over the past month. This has outpaced the Computer and Technology sector's gain of 4.44% and the S&P 500's gain of 3.77% in that time. Investors will be e ...

Core Insights - The average brokerage recommendation (ABR) for Zscaler (ZS) is 1.64, indicating a consensus between Strong Buy and Buy based on 39 brokerage firms' recommendations [2] - Despite the positive ABR, there are concerns regarding the reliability of brokerage recommendations due to potential biases stemming from the vested interests of brokerage firms [4][5] - The Zacks Rank, which is based on earnings estimate revisions, provides a more reliable indicator of near-term stock performance compared to the ABR [6][9] Brokerage Recommendations - Zscaler's ABR consists of 26 Strong Buy and 1 Buy recommendations, accounting for 66.7% and 2.6% of total recommendations respectively [2] - The ABR is calculated based on brokerage recommendations and is typically displayed with decimals, while the Zacks Rank is a quantitative model displayed in whole numbers [7] Analyst Optimism and Earnings Estimates - Analysts from brokerage firms tend to be overly optimistic, often issuing more favorable ratings than their research supports, which can mislead investors [8] - The Zacks Consensus Estimate for Zscaler has declined by 2.9% over the past month, indicating growing pessimism among analysts regarding the company's earnings prospects [11] Zacks Rank vs. ABR - The Zacks Rank is driven by earnings estimate revisions and is more timely in reflecting future price movements compared to the ABR, which may not always be up-to-date [10] - Zscaler currently holds a Zacks Rank of 4 (Sell), suggesting that the positive ABR should be approached with caution [12]

The most recent trading session ended with Zscaler (ZS) standing at $198.26, reflecting a +1.41% shift from the previouse trading day's closing. The stock outperformed the S&P 500, which registered a daily gain of 0.61%. Elsewhere, the Dow gained 0.97%, while the tech-heavy Nasdaq added 0.33%. Shares of the cloud-based information security provider have appreciated by 17.27% over the course of the past month, outperforming the Computer and Technology sector's gain of 8.6% and the S&P 500's gain of 5.36%. Th ...