Zscaler (ZS) Stock Drops Despite Market Gains: Important Facts to Note

In the latest close session, Zscaler (ZS) was down 2.15% at $170.71. This move lagged the S&P 500's daily gain of 0.17%. Elsewhere, the Dow saw an upswing of 0.55%, while the tech-heavy Nasdaq appreciated by 0.09%. The stock of cloud-based information security provider has risen by 22.28% in the past month, leading the Computer and Technology sector's gain of 10.31% and the S&P 500's gain of 4.59%.The upcoming earnings release of Zscaler will be of great interest to investors. The company's earnings report is expected on May 26, 2026. The company is predicted to post an EPS of $1, indicating a 19.05% growth compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $834.76 million, indicating a 23.11% increase compared to the same quarter of the previous year. Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4.03 per share and revenue of $3.32 billion, indicating changes of +22.87% and +24.04%, respectively, compared to the previous year. It's also important for investors to be aware of any recent modifications to analyst estimates for Zscaler. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability. Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system. The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Right now, Zscaler possesses a Zacks Rank of #3 (Hold). Valuation is also important, so investors should note that Zscaler has a Forward P/E ratio of 43.33 right now. This signifies no noticeable deviation in comparison to the average Forward P/E of 43.33 for its industry. It's also important to note that ZS currently trades at a PEG ratio of 2.96. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Security industry held an average PEG ratio of 3.06. The Security industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 148, this industry ranks in the bottom 40% of all industries, numbering over 250. The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com. Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.Free: See Our Top Stock And 4 Runners UpThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks