Zscaler(US:ZS) ZACKSยท2025-08-07 22:46Company Performance - Zscaler's stock closed at $272.50, reflecting a -5.81% change from the previous day's closing price, underperforming the S&P 500's daily loss of 0.08% [1] - Prior to the recent trading session, Zscaler shares had declined by 8.59%, contrasting with the Computer and Technology sector's gain of 3.95% and the S&P 500's gain of 1.21% [1] Upcoming Earnings - Zscaler is expected to report an EPS of $0.8, which indicates a 9.09% decline compared to the same quarter last year [2] - The consensus estimate for Zscaler's revenue is projected at $706.19 million, representing a 19.11% increase year-over-year [2] Full Year Projections - For the full year, Zacks Consensus Estimates project earnings of $3.18 per share and revenue of $2.66 billion, reflecting changes of -0.31% and 0% respectively from the prior year [3] - Analysts' forecast revisions are crucial as they indicate the changing nature of near-term business trends, with positive revisions suggesting optimism regarding business and profitability [3][4] Valuation Metrics - Zscaler has a Forward P/E ratio of 81.13, which is higher than the industry average of 64.23, indicating that Zscaler is trading at a premium [6] - The company also has a PEG ratio of 5.62, compared to the Security industry's average PEG ratio of 2.9, suggesting a higher valuation relative to expected earnings growth [6] Industry Context - The Security industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 100, placing it in the top 41% of all industries [7] - The Zacks Industry Rank measures the strength of individual industry groups, with the top 50% rated industries outperforming the bottom half by a factor of 2 to 1 [7]