Zscaler Stock Powers Down Before Earnings

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]