Company Overview - Zscaler (ZS) closed at $219.86, with a +1.99% change from the previous day, outperforming the S&P 500's daily gain of 0.06% [1] - Over the past month, Zscaler shares gained 4.07%, contrasting with the Computer and Technology sector's loss of 5.52% and the S&P 500's loss of 4.29% [1] Earnings Expectations - The upcoming earnings release is expected to show an EPS of $0.75, a 14.77% decrease compared to the same quarter last year [2] - Revenue is forecasted to be $666.11 million, indicating a 20.41% growth year-over-year [2] Full-Year Estimates - Full-year Zacks Consensus Estimates predict earnings of $3.06 per share and revenue of $2.65 billion, reflecting year-over-year changes of -4.08% and +22.18%, respectively [3] - Recent revisions to analyst forecasts are crucial as they reflect near-term business trends, with positive changes indicating analyst optimism [3] Valuation Metrics - Zscaler's Forward P/E ratio is 70.56, which is higher than the industry average of 63.04, indicating a premium valuation [6] - The current PEG ratio stands at 5.11, compared to the Security industry's average PEG ratio of 3.2 [6] Industry Context - The Security industry is part of the Computer and Technology sector and holds a Zacks Industry Rank of 160, placing it in the bottom 36% of over 250 industries [7] - The Zacks Industry Rank assesses the performance of industry groups based on the average Zacks Rank of individual stocks, with the top 50% rated industries outperforming the bottom half by a factor of 2 to 1 [7]

Core Viewpoint - SentinelOne's stock has significantly underperformed in the market, with a 22.7% decline over the past three months, contrasting with the broader industry and sector performance [1][3] Group 1: Stock Performance - The stock is currently 38.6% below its 52-week high of $29.29, indicating a substantial drop in value [1] - The technical setup shows a bearish trend, with the stock trading below both the 50-day and 200-day moving averages, suggesting limited upward momentum [2] Group 2: Revenue Growth and Projections - SentinelOne has projected a revenue growth of 23% for fiscal 2026, a decrease from the previous year's 32% growth, which raises concerns about valuation pressure [7] - The company added over 500 new customers and maintained a 115% net revenue retention rate, but experienced a decline in revenue per customer, indicating challenges in upselling [8] Group 3: Market Position and Strategy - Despite recent challenges, SentinelOne is transitioning from an endpoint-centric business to a broader AI-native cybersecurity platform, with over 50% of bookings in the fiscal fourth quarter coming from non-endpoint products [9] - The company has seen strong adoption of its AI-driven products, such as Purple AI, and significant traction in cloud security, contributing to customer expansion [10] Group 4: Financial Metrics - Annual recurring revenue (ARR) grew 27% year over year to $920 million, with $60 million in net new ARR added in the quarter, showcasing improved execution [12] - Remaining performance obligations (RPO) grew 30% to $1.2 billion, indicating strong future revenue visibility [13] Group 5: Valuation - SentinelOne is currently trading at a forward 12-month price-to-sales (P/S) ratio of 5.57X, slightly above the sector's 5.39X, reflecting a premium valuation [15]

Core Viewpoint - Check Point Software reported quarterly earnings of $2.21 per share, exceeding the Zacks Consensus Estimate of $2.19 per share, and showing an increase from $2.04 per share a year ago, indicating a positive earnings surprise of 0.91% [1] Financial Performance - The company achieved revenues of $637.8 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 0.22% and reflecting a year-over-year increase from $598.8 million [2] - Over the last four quarters, Check Point has exceeded consensus EPS estimates three times and has also topped consensus revenue estimates three times [2] Stock Performance - Check Point shares have appreciated approximately 13.7% since the beginning of the year, contrasting with the S&P 500's decline of 10.1% [3] - The current consensus EPS estimate for the upcoming quarter is $2.37, with expected revenues of $662.72 million, and for the current fiscal year, the EPS estimate is $9.91 on revenues of $2.71 billion [7] Industry Outlook - The Zacks Industry Rank indicates that the Security industry is currently in the top 29% of over 250 Zacks industries, suggesting a favorable outlook as the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8]

Core Viewpoint - CyberArk (CYBR) is positioned well to continue its trend of beating earnings estimates, supported by a strong history of performance in the Zacks Security industry [1]. Earnings Performance - CyberArk has consistently exceeded earnings estimates, with an average surprise of 60.78% over the last two quarters [2]. - In the last reported quarter, CyberArk achieved earnings of $0.80 per share, surpassing the Zacks Consensus Estimate of $0.71 per share by 12.68% [3]. - In the previous quarter, the company reported earnings of $0.94 per share against an expected $0.45 per share, resulting in a surprise of 108.89% [3]. Earnings Estimates and Predictions - Estimates for CyberArk have been trending higher, influenced by its history of earnings surprises [6]. - The stock has a positive Zacks Earnings ESP of +3.08%, indicating recent bullish sentiment among analysts regarding the company's earnings prospects [9]. - The combination of a positive Earnings ESP and a Zacks Rank of 2 (Buy) suggests a strong likelihood of another earnings beat in the upcoming report [9]. Statistical Insights - Research indicates that stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have a nearly 70% chance of producing a positive surprise [7]. - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, reflecting the latest analyst revisions [8].

Company Overview - CrowdStrike Holdings (CRWD) stock closed at $378.66, with a slight increase of +0.2% compared to the previous day, underperforming the S&P 500's daily gain of 0.79% [1] - The stock has increased by 6.83% over the past month, contrasting with a 4.81% loss in the Computer and Technology sector and a 3.56% loss in the S&P 500 [1] Earnings Projections - CrowdStrike is expected to report earnings of $0.65 per share, reflecting a year-over-year decline of 30.11%, while revenue is projected to be $1.1 billion, indicating a 19.93% increase compared to the same quarter last year [2] - For the annual period, earnings are anticipated to be $3.40 per share, with revenue expected to reach $4.78 billion, representing changes of -13.49% and +20.86% respectively from the previous year [3] Analyst Forecasts - Recent revisions to analyst forecasts for CrowdStrike are crucial as they indicate shifts in near-term business trends, with positive changes suggesting analyst optimism regarding the company's performance [4] - The Zacks Consensus EPS estimate has decreased by 37.65% in the past month, and CrowdStrike currently holds a Zacks Rank of 4 (Sell) [6] Valuation Metrics - CrowdStrike is trading at a Forward P/E ratio of 111.02, which is significantly higher than its industry's Forward P/E of 58.38 [7] - The company has a PEG ratio of 5.17, compared to the Security industry's average PEG ratio of 3.06, indicating a premium valuation relative to growth expectations [7] Industry Context - The Security industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 72, placing it in the top 30% of over 250 industries [8] - Research indicates that industries in the top 50% of the Zacks Rank tend to outperform those in the bottom half by a factor of 2 to 1 [8]

Group 1 - IHS Holding is currently ranked 1 (Strong Buy) in the Zacks Rank system, indicating a favorable outlook for the stock [3] - The Zacks Consensus Estimate for IHS' full-year earnings has increased by 30.9% over the past quarter, reflecting improved analyst sentiment [4] - Year-to-date, IHS Holding has gained approximately 57.5%, significantly outperforming the average loss of 14.5% in the Computer and Technology sector [4] Group 2 - IHS Holding is part of the Communication - Infrastructure industry, which is currently ranked 16 in the Zacks Industry Rank [6] - The Communication - Infrastructure industry has shown better year-to-date performance compared to the average gain of 1.3% in its group [6] - Another notable stock in the Computer and Technology sector is Okta (OKTA), which has increased by 29.2% year-to-date and has a Zacks Rank of 2 (Buy) [5]

For those looking to find strong Computer and Technology stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Check Point Software (CHKP) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out.Check Point Software is one of 611 companies in the Computer and Technology group. The Computer and Technology group currently sits at #6 within the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of ou ...