Is Most-Watched Stock Zscaler, Inc. (ZS) Worth Betting on Now?

Core Viewpoint - Zscaler has been experiencing a decline in stock performance, with a -5.9% return over the past month, contrasting with the S&P 500's +0.4% and the Zacks Security industry's -1.5% [2] Earnings Estimate Revisions - Zscaler is projected to report earnings of $0.89 per share for the current quarter, reflecting a +14.1% increase year-over-year, although the Zacks Consensus Estimate has decreased by -0.7% in the last 30 days [5] - For the current fiscal year, the consensus earnings estimate is $3.8, indicating a +15.9% change from the previous year, with a notable increase of +16.7% in the last month [5] - The next fiscal year's consensus earnings estimate stands at $4.37, showing a +15.1% change from the prior year, with a slight increase of +0.1% over the past month [6] - Zscaler holds a Zacks Rank 3 (Hold), indicating a neutral outlook based on earnings estimate revisions [7] Revenue Growth Forecast - The consensus sales estimate for Zscaler is $798 million for the current quarter, representing a year-over-year growth of +23.2% [11] - For the current fiscal year, the sales estimates are $3.29 billion and $3.94 billion, indicating growth rates of +23.1% and +19.7%, respectively [11] Last Reported Results and Surprise History - In the last reported quarter, Zscaler achieved revenues of $788.11 million, a +25.5% increase year-over-year, and an EPS of $0.96 compared to $0.77 a year ago [12] - The company exceeded the Zacks Consensus Estimate for revenues by +1.91% and for EPS by +12.94% [12] - Zscaler has consistently beaten consensus EPS and revenue estimates in the last four quarters [13] Valuation - Zscaler is currently graded F on the Zacks Value Style Score, indicating it is trading at a premium compared to its peers [17]