Zscaler-1 Growth Stock Down 45% to Buy Right Now, According to Wall Street

Company Overview - Zscaler has seen its shares increase nearly 10% year-to-date, driven by strong financial performance in its fiscal 2025 second quarter, which ended January 31 [2] - The company specializes in cybersecurity software and is experiencing robust demand as businesses face increasing digital threats [2] Financial Performance - Zscaler reported revenue of $647.9 million for the fiscal 2025 second quarter, marking a 23% increase year-over-year and exceeding guidance of$ 634 million [9] - The company has raised its full-year revenue forecast for fiscal 2025 by $14 million to$ 2.647 billion [9] - Operating expenses grew by only 19% in the first half of fiscal 2025, slower than the nearly 25% revenue growth, indicating improved cost management [10] - Zscaler's net loss for the first half of fiscal 2025 was $19.7 million, a 68% reduction from the previous year's loss of$ 61.9 million [11] - On a non-GAAP basis, Zscaler achieved profitability of $251.8 million, a 35.1% increase compared to the first half of fiscal 2024 [12] Market Position and Strategy - Zscaler's stock remains 45% below its all-time high from 2021, suggesting potential for investment [3] - The company has shifted from a growth-at-all-costs strategy to a more balanced approach, focusing on sustainable growth and profitability [13] - Zscaler aims to create a "Zero Trust Everywhere" environment, with 130 customers currently adopting this approach and plans to triple that number in 18 months [8] Analyst Sentiment - The majority of analysts covering Zscaler stock have assigned it the highest buy rating, with no recommendations to sell [3][14] - The average price target for Zscaler's stock is$ 236.50, indicating an 18% potential upside, while the highest target suggests a 35% upside [15] Industry Context - The total addressable market for Zscaler is valued at $96 billion, indicating significant growth potential [16] - Cybercrime is projected to cause$ 10.5 trillion in damages globally in 2025, suggesting increasing demand for advanced cybersecurity solutions [17] - Zscaler's stock, previously overvalued at around $370, may have the potential to reclaim that level if it continues its current growth trajectory [18]