1 Glorious Growth Stock Down 31% to Buy Hand Over Fist, According to Wall Street

Core Insights - Zscaler's quarterly revenue grew at its fastest pace in a year, reaching $788 million, a 26% year-over-year increase, surpassing management's forecast [10][11] - The company is adopting a "Zero-Trust Everywhere" approach to enhance cybersecurity, which includes new products like AI-SPM to manage AI-related risks [5][6][8] - Analysts are generally bullish on Zscaler stock, with a consensus price target of $330.69, suggesting a potential 31% upside [13] Financial Performance - Zscaler's revenue for fiscal Q1 2026 was $788 million, exceeding the forecasted range of $772 million to $774 million, marking a 26% increase from the previous year [10] - The company modestly raised its full-year revenue guidance for fiscal 2026 from $3.275 billion to $3.292 billion [11] - Zscaler reported a GAAP loss of $11.6 million but achieved an adjusted net income of $159.5 million, a 28% increase from the previous year [12] Market Position - Zscaler's stock is currently down 31% from its 2021 peak, but analysts maintain a positive outlook, with 32 out of 50 recommending a buy [4][13] - The stock trades at a price-to-sales (P/S) ratio of 14.5, which is a slight premium compared to Palo Alto Networks but a discount to CrowdStrike [14] - The company aims to significantly increase its annual recurring revenue to $10 billion in the coming years, indicating strong growth potential [16]