Zscaler (ZS) earnings: can the growth sustain?

1:44 am ET, 03 Dec 2018

Zscaler, Inc. (ZS) shares are trading at $39.26, up 4.53%. The company is announcing its quarterly earnings results on Tuesday before the market opens. What's driving Zscaler stock price? What's ZS stock price forecast?

Zscaler is a global cloud-based information security company that provides Internet security, web security, and next-generation firewalls solutions.  Lately, the stock has performed well: it generated a return of 35% in the past six months. The company offers security-as-a-service and competes with Cisco and Symantec.

Investors are showing interest in the company because of its solid revenue growth. On the other hand, few bearish investors worry about rising losses. Last quarter’s revenue rose 54% to $56.17 million and earnings per share came at -$0.01 compared to -$0.07 for the same period last year.  Revenue for the full fiscal year 2018 grew 51% to $190.2 million.

First-quarter FY19 revenue will be released after market close on December 04, 2018. Analysts expect the company to earn -$0.05 on revenue of $58.65 million. The company beat analysts’ estimates in the previous two quarters.

What is the sentiment towards the ZS stock? Our technical analysis shows that:

  • The stock short-term sentiment (next 30 days) is trending negative;
  • The mid-term sentiment (3-6 months) is negative;
  • The long-term sentiment (9-12 months) is neutral. 

Over the last month, Zscaler, Inc. (ZS) returned -4.73%.

Zscaler, Inc. (ZS) short share of float is 9.14%. The stock is much more frequently shorted than the average industry, sector or S&P 500 stock.

Zscaler, Inc. (ZS) average analyst price target ($36.27) is 7.15% above its current price ($33.85).

For the latest price and information on Zscaler, Inc., please visit Finstead and search for "ZS price" or "ZS news".

Zscaler, Inc. (ZS) Stock Guide

Updated at: 2:26 am ET, 19 Sep 2020

Before we start: if you're looking for ZS stock price, you can quickly find it out by visiting Finny and typing "ZS quote". If you're looking for a quick scoop on ZS stock (chart, price target, market cap, news and buy or sell analysis), go to Finny and look for "ZS". You'll get all this info in one place. Or you can just type "ZS news" to get the latest stock news.

Looking to buy or sell Zscaler, Inc. (ZS)? Interested in getting the full scoop on ZS, including earnings and dividends, stock forecast, buy or sell analysis and key stats? If so, you came to the right place.

In this ZS stock guide, we'll address key questions about ZS, above and beyond what you can find on Yahoo Finance, Zacks, MarketWatch or Morningstar.

Here is what you'll be able to find in this guide:

Earnings and Dividends: earnings, earnings date, dividend rate and dividend yield;
Analyst Predictions: stock forecast and analyst ratings;
Analysis: Finny Score and buy or sell analysis;
Key Stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio, industry, sector, and number of employees.

And here is the list of questions we'll answer:
1. What are ZS earnings?
2. What is ZS stock forecast (i.e., prediction)?
3. ZS buy or sell? What is ZS Finny Score?
4. What are the reasons to buy ZS? Why should I buy ZS stock?
5. What are the reasons to sell ZS? Why should I sell ZS stock?
6. What are ZS key stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

So let's start. Scroll down to the question that interests you the most.

Earnings and Dividends

1. What are ZS earnings?

ZS trailing 12-month earnings per share (EPS) is -$0.55.

Analyst Predictions

2. What is ZS stock forecast (i.e., prediction)?

Based on ZS analyst price targets, ZS stock forecast is $119.78 (for a year from now). That means the average analyst price target for ZS stock is $119.78. The prediction is based on 12 analyst estimates.

The low price target for ZS is $73.00, while the high price target is $198.00.

ZS analyst rating is Buy.

Analysis

3. ZS buy or sell? What is ZS Finny Score?

#{finnyScore:36}Our quantitative analysis shows 4 reasons to buy and 7 reasons to sell ZS, resulting in Finny Score of 36.

4. What are the reasons to buy ZS? Why should I buy ZS stock?

Here are the reasons to buy ZS stock:

  • ZS quarterly revenue growth was 39.70%, higher than the industry and sector average revenue growth (1.70% and 0.89%, respectively). See ZS revenue growth chart.
  • ZS profitability is improving. The YoY profit margin change was 14.80 percentage points. See ZS profitability chart.
  • ZS average analyst rating is Buy. See ZS analyst rating chart.
  • ZS cash to debt ratio is 9.58, higher than the average industry (0.19) and sector (0.17) cash to debt ratio. See ZS cash to debt chart.

5. What are the reasons to sell ZS? Why should I sell ZS stock?

Let's look at the reasons to sell ZS stock (i.e., the bear case):

  • ZS Price/Book ratio is 62.06, which is high compared to its industry peers’ P/B ratios. See ZS forward Price/Book ratio chart.
  • ZS Price/Sales ratio is 53.13, which is high compared to its industry peers’ P/S ratios. See ZS forward Price/Sales ratio chart.
  • ZS PEG ratio (P/E adjusted for growth) is 26.59, which is high compared to its industry peers’ PEG ratios. See ZS PEG chart.
  • ZS average analyst price target ($119.78) is below its current price ($129.10). See ZS price target chart.
  • ZS short share of float is 10.98%. The stock is much more frequently shorted than the average industry, sector or S&P 500 stock. See ZS short share of float chart.
  • ZS short interest (days to cover the shorts) ratio is 3.58. The stock garners more short interest than the average industry, sector or S&P 500 stock. See ZS short interest ratio chart.
  • ZS Enterprise Value/Revenue multiple is 46.89, which is high compared to its industry peers’ Enterprise Value/Revenue multiples. See ZS Enterprise Value/Revenue chart.

Key Stats

6. What are ZS key stats : revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

Let's look at the key statistics for ZS:

Metrics ZS
Price $135.66
Average Price Target / Upside $119.78 / -11.71%
Average Analyst Rating Buy
Forward Dividend Yield 0.00%
Industry Software - Infrastructure
Sector Technology
Number of Employees 1,050
Market Cap $20.8B
Forward P/E Ratio 549.52
Price/Book Ratio 53.13
Revenue (TTM) $391.49M
YoY Quarterly Revenue Growth 39.70%
Profit Margin -18.10%

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