Lets instead assume 30% long-term net margins. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. Privacy Notice | Why Downtrodden Zscaler Stock Suddenly Soared Today It appears that shareholders are confident in the company's future revenues, which is propping up the P/S. Shares of zero-trust cybersecurity specialistZscaler (ZS -0.29%) suddenly soared on Monday after reporting upbeat preliminary financial results for its fiscal third quarter of 2023 and raising full-year financial guidance. After Leaping 45% Zscaler, Inc. (NASDAQ:ZS) Shares Are Not Flying Under That said, these are modest increases to guidance, in my opinion. Investing in stocks, bonds, option and other financial instruments involve risks and may not be suitable for everyone. Both of these products are newer, but Workloads solutions has been gaining some nice traction. Based in San Francisco, his current focus is on the more exciting world of semiconductors, videogames and cybersecurity, when he's not churning out earnings coverage. Despite some risks, such as economic slowdown and competition, Zscaler's current valuation makes it an attractive investment opportunity. And yet, Wall Street is cutting its price targets on the stock despite the good news. Authors may own the stocks they discuss. Adding Workload or IOT protection can be another upsell boost. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. Zscaler Inc is down 6.89% from its previous closing price of $142.77. There's more scrutiny. Im ready for my golden years: Im 62. Upselling is also a big opportunity for ZS. Cybersecurity is still a priority, but there is certainly more scrutiny across the board. So what. ET despite exceeding earnings estimates handily last night. Our company news sentiment scores track the average news sentiment of articles about each company over the most recent 7 days in order to identify companies that are receiving positive press. 5 Best-Performing Stocks of the Top ETF of May. CrowdStrike (NASDAQ:CRWD) Q1 Earnings Today: Will it Beat Forecasts? SPX, Typically, investors prefer to see bookings outpacing revenue because it can be an indication of an acceleration of the growth rate in the future. That's shaping up to be materially higher than the 13% per year growth forecast for the broader industry. Trulieve laying off 128 people as it exits Massachusetts business: Report. The company said in a filing with the Securities and Exchange Commission it was trimming its global workforce by 3%, or about 150 positions, by the end of fiscal 2023, which ends in July, and taking an $8 million to $10 million charge. a 17% decline by the tech-heavy Nasdaq Composite Index The second part is great, you got pipeline. I have no business relationship with any company whose stock is mentioned in this article. I wrote this article myself, and it expresses my own opinions. Short Term 2W - 6W Mid Term 6W - 9M Long Term 9M+ Fair Value is the appropriate price for the shares of a company, based on its earnings and growth rate also interpreted as when P/E Ratio = Growth. Is Zscaler (ZS) Likely to Surpass Q3 Earnings Estimates? These Stocks Offer Shelter From Bank Turmoil. Monday.com Leads 13 Top IPO Stocks To Watch, 'I'm 50 And I Have Never Saved For Retirement. Why Zscaler Inc's (ZS) Stock Is Down 6.89% | AAII - Investor Education C3.ai, Samsara, Zscaler, First Solar, Apple, and More Stock Market Movers Today, Zscaler stock sheds more than 10% as cybersecurity company has a lot more explaining to do, Stocks on the move: C3.ai surges but ChargePoint and Zscaler dive, Zscaler stock drops 12% after deal delays overshadow raised outlook. Number two, there's a lot of push on business justification. If you're new to IBD, consider taking a look at its stock trading system and CAN SLIM basics. These 3 trends will power the future of artificial intelligence, WeQuit: WeWork bonds sink after top executives resign from cash-burning company, Targets stock, on its longest losing streak in 23 years, downgraded at JPMorgan, Lucid Groups stock slides 10% premarket after EV company announces $3 billion stock offering and private placement. While the macro environment could impact sales growth some, ZS is still in the right area and shouldnt see a huge impact to its business, with ZTNA being one of the biggest cybersecurity priorities among organizations. All rights reserved. High conviction investment ideas in the winners of tomorrow. Get Zscaler News Delivered to You Automatically. The information and content are subject to change without notice. Shares of cybersecurity specialist Zscaler (ZS -0.29%) are falling today, down 10% as of 11 a.m. ZIA is ZSs biggest solution, and the company still has a lot of room to grow in this area. Tesla is clearing a buy point. Heading into fiscal Q2 2023, analysts had forecast a $0.29-per-share profit on sales of $364.9 million -- and the company beat on both top and bottom lines. Monthly jobs data is driving large swings in U.S. stocks this year. Why Is Advance Auto Parts (AAP) Stock Down 29% Today? ZIA, ZPA, and ZDX solutions as well as ZIA add-ons all increase the cost of a product per user. HACK, Zscaler Inc has a Bullish sentiment reading. Because that's where extra scrutiny comes in. Please. ', Investing In The Future Of The Hydrogen Economy, Zscaler Stock Gets A Composite Rating Upgrade Day Before Earnings, After Bullish Report In March, Salesforce Stock Ramps Higher Ahead Of Results; 3 Security Software Stocks To Watch, Cybersecurity Stocks To Watch As Earnings Reports Come In, Dow Jones Dips As Zscaler Rockets; Three Warren Buffett Stocks Near Entries As Berkshire Gains. COMP, But investors have caught on. I previously covered the stock here, stating that the stock was still overvalued in spite of a mild correction. Zscaler Inc Stock Price History. All quotes are in local exchange time. And yet, Wall Street was decidedly not happy with these numbers. Bilibili (BILI) to Report Q1 Earnings: What's in the Cards? Julian Lin is a top ranked financial analyst. user's device, the internet or WiFi connection, or the service provider. Zscaler, Inc. shares have had a really impressive month, gaining 45% after a shaky period beforehand. 326 E 8th St #105, Sioux Falls, SD 57103 What is the Penalty for Excess Contributions to an IRA? I have no business relationship with any company whose stock is mentioned in this article. Number one, Zscaler has always been selling to C level because we are transformational. Since then, the stock price has plunged almost threefold. Now why is that? Number one, due to tight environment, is there enough demand? What is an MSSP and how does it help SMBs? - Zscaler It seems most investors are expecting this strong future growth and are willing to pay more for the stock. To make the world smarter, happier, and richer. The company has potential for growth through new customer acquisition, upselling to existing customers, and replacing outdated security technology. Traditional appliances, firewalls have been bought at the technical level, we started at a CIO level, not even CISO, CIO level. Dollar Generals stock bounces 1.9% premarket, after suffering record 19.5% plunge on Thursday, MW Forecast: Unemployment rate estimated at 3.5% in May. Wells Fargo analyst Andrew Nowinski maintainedZscalerwith anOverweight rating and loweredthe price target from$400to$350. While it has the opportunity for greenfield expansion, there is also still a big replacement market out there. U.S. stocks finished down, though off daily lows. Notice: Information contained herein is not and should not be construed as an offer, solicitation, or recommendation to buy or sell securities. "Customers are not only gaining security advantages from our Zero Trust model but they are also reaping the benefits of faster innovation and economics from our global cloud, which is now processing more than 210 billion transactions per day," saidJay Chaudhry, chairman and CEO of Zscaler. -4.69% which late Wednesday said the bulk of its businesses was in upsells and cross-sells to established customers, and Wall Street said the company was partially out of the woods.. earnings report, another cloud-software company this week that promised profitability and trimmed jobs, giving the stock its biggest boost since 2020. Analysts expected Zscaler earnings of 12 cents per share on sales of $212 million. Zscaler stock was tumbling Friday after the cloud-based internet security company's guidance deflated investor enthusiasm, even as its second-quarter results handily beat estimates. Zscaler Stock Reverses Down After Earnings, Guidance Top Estimates Shares in Zscaler have seen a strong upwards swing lately, which has really helped boost its P/S figure. I have no business relationship with any company whose stock is mentioned in this article. However, if this isn't the case, investors might get caught out paying too much for the stock. You have already added five stocks to your watchlist. Zscaler Plunges As Earnings Top Views, But Size Of Billings Beat Disappoints, Stock Market Builds On Gains As AI Stocks Lead The Charge; Medical Stock Jumps, Dow Jones Rises After Key Economic Data; AI Stock Soars 23% On 'Dramatic Change' In Sentiment. August 19, 2019 at 12:55 PM What happened Sharers of cloud security provider Zscaler (NASDAQ: ZS) sank on Monday, despite no company-specific news. Invest better with The Motley Fool. As of Thursdays close, Zscalers stock is down 47% over the past 12 months, compared with a 9% loss by the S&P 500 index What's Happening With ZS Stock Today? 86% of retail CFD accounts lose money, Zscaler (ZS) Receives a Hold from Loop Capital Markets, Analysts Have Conflicting Sentiments on These Technology Companies: Zscaler (ZS), Samsara (IOT) and Broadcom (AVGO), Zscaler (ZS) Gets a Buy from Evercore ISI, BTIG Sticks to Its Hold Rating for Zscaler (ZS), Stifel Nicolaus Remains a Buy on Zscaler (ZS), Canaccord Genuity Sticks to Its Buy Rating for Zscaler (ZS), Zscaler (ZS) Receives a Rating Update from a Top Analyst, Piper Sandler Reaffirms Their Hold Rating on Zscaler (ZS), Registration on or use of this site constitutes acceptance of our. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. ZPA can grant access to an app without exposing its identity or location. The company has sustained 2 straight quarters of accelerated revenue growth, with a 63% growth rate that is higher than pandemic levels. The Cybersecurity Stock Soars. Zscaler is a cloud security provider with a focus on zero trust network access (ZTNA), one of the fastest growing segment in the cybersecurity market. The company has guided for decelerating growth rates, but has not been punished like peers for the same crime. Adding ZPA and ZDX solutions to a ZIA customer, for example, can nicely increase revenue at existing customers. Is this happening to you frequently? In short, analysts are right that growth seems to be decelerating at Zscaler. If we assume that ZS trades at a 1.5x price to earnings growth ratio (PEG ratio), then the stock might trade at 13.5x sales by then. Real-time analyst ratings, insider transactions, earnings data, and more. In January, we saw higher scrutiny on budgets compared to December, resulting in additional delays in large deals, Jay Chaudhry, Zscaler chair and chief executive, told analysts. The company has potential for growth through . Is Zscaler Inc (ZS) Stock About to Get Hot Thursday? - InvestorsObserver Zscaler Is Down 40%, But Is Still Too Expensive - Seeking Alpha I am not receiving compensation for it (other than from Seeking Alpha). OKTA, Should You Buy Zscaler (ZS) Ahead of Earnings? ZS Stock Price | Zscaler Inc. Stock Quote (U.S.: Nasdaq) | MarketWatch Learn about the media coverage comparison. That's noteworthy because Q3 is apparently shaping up better than anticipated. What's Going On With Palo Alto, CrowdStrike And Zscaler Shares? "Further, we believe that ZS stock has significant upside tension to 2022 billings guidance.". Gold on track for first weekly gain in four as traders await U.S. jobs report, Eli Lilly releases new data on breast cancer, lymphoma treatments. Zscaler outage causing heavy packet loss, connectivity issues ZS is in one of the hottest areas of cybersecurity: zero trust network access (ZTNA). Get these newsletters delivered to your inbox & more info about our products & services. To put that in . Zscaler is universally recognized as the leader in zero trust. Ownership data provided by Refinitiv and Estimates data provided by FactSet. Zscaler stock jumped in 2020 amid a corporate shift to remote work during the early coronavirus crisis. ZS is trading at 32x FY22 sales. Ive $350K in Roth accounts and $840K in annuities. This implies a growth rate of 38%, which is indeed slower than Q2's 52% rate of growth, but also better than the $387 million in quarterly revenue that analysts were looking for.
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