Zscaler (ZS) Stock Falls Amid Market Uptick: What Investors Need to Know

Company Performance - Zscaler's stock closed at $214.67, reflecting a -1.01% change from the previous day, underperforming the S&P 500's gain of 0.24% [1] - Over the last month, Zscaler's shares increased by 13.06%, outperforming the Computer and Technology sector's gain of 1.76% and the S&P 500's gain of 2.37% [1] Upcoming Financial Results - Zscaler is set to announce its earnings on March 5, 2025, with analysts expecting earnings of$ 0.69 per share, indicating a year-over-year decline of 9.21% [2] - The consensus estimate for quarterly revenue is $634.07 million, representing a 20.78% increase from the same period last year [2] Annual Estimates - For the annual period, Zacks Consensus Estimates project earnings of$ 2.99 per share and revenue of $2.64 billion, reflecting changes of -6.27% and +21.58% respectively from the previous year [3] - Recent changes to analyst estimates for Zscaler may indicate shifting business dynamics, with positive revisions suggesting a favorable business outlook [3] Valuation Metrics - Zscaler currently holds a Zacks Rank of 2 (Buy), with the Zacks Consensus EPS estimate increasing by 34.4% in the past month [5] - The company has a Forward P/E ratio of 72.56, which is higher than the industry's average Forward P/E of 67.06 [5] Industry Context - Zscaler's PEG ratio stands at 5.38, compared to the average PEG ratio of 3.07 for the Security industry, indicating a premium valuation [6] - The Security industry is part of the Computer and Technology sector, which has a Zacks Industry Rank of 20, placing it in the top 8% of over 250 industries [6]