Is Zscaler Stock a Good Investment?
Zscaler Investment Advice | ZS |
- Examine Zscaler's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Zscaler's leadership team and their track record. Good management can help Zscaler navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Systems Software space and any emerging trends that could impact Zscaler's business and its evolving consumer preferences.
- Compare Zscaler's performance and market position to its competitors. Analyze how Zscaler is positioned in terms of product offerings, innovation, and market share.
- Check if Zscaler pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Zscaler's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Zscaler stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Zscaler is a good investment.
Sell | Buy |
Sell
Market Performance | Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Responds to the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Zscaler Stock
Researching Zscaler's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 37.0% of the company outstanding shares are owned by insiders. The company has Price/Earnings To Growth (PEG) ratio of 1.26. Zscaler recorded a loss per share of 0.4. The entity had not issued any dividends in recent years.
To determine if Zscaler is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Zscaler's research are outlined below:
| Zscaler had very high historical volatility over the last 90 days | |
| The company generated the yearly revenue of 2.17 B. Annual Net Loss to common stockholders was (57.71 M) with gross profit of 1.26 B. | |
| About 37.0% of the company outstanding shares are owned by insiders | |
| Latest headline from zacks.com: Unveiling Zscaler Q1 Outlook Wall Street Estimates for Key Metrics |
Zscaler uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Zscaler. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Zscaler's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 7th of March 2024 Upcoming Quarterly Report | View | |
| 6th of June 2024 Next Financial Report | View | |
| 31st of January 2024 Next Fiscal Quarter End | View | |
| 3rd of September 2024 Next Fiscal Year End | View | |
| 31st of October 2023 Last Quarter Report | View | |
| 31st of July 2023 Last Financial Announcement | View |
Earnings surprises can significantly impact Zscaler's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Zscaler's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2022-02-24 | 2022-01-31 | 0.11 | 0.13 | 0.02 | 18 | ||
2021-11-30 | 2021-10-31 | 0.12 | 0.14 | 0.02 | 16 | ||
2021-02-25 | 2021-01-31 | 0.08 | 0.1 | 0.02 | 25 | ||
2020-09-09 | 2020-07-31 | 0.03 | 0.05 | 0.02 | 66 | ||
2019-12-03 | 2019-10-31 | 0.01 | 0.03 | 0.02 | 200 | ||
2022-12-01 | 2022-10-31 | 0.26 | 0.29 | 0.03 | 11 | ||
2019-05-30 | 2019-04-30 | 0.01 | 0.05 | 0.04 | 400 | ||
2018-09-05 | 2018-07-31 | -0.05 | -0.01 | 0.04 | 80 |
Know Zscaler's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Zscaler is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Zscaler backward and forwards among themselves. Zscaler's institutional investor refers to the entity that pools money to purchase Zscaler's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Pictet Asset Manangement Sa | 2024-06-30 | 1.3 M | Champlain Investment Partners, Llc | 2024-09-30 | 1.3 M | Fmr Inc | 2024-09-30 | 1.2 M | Deutsche Bank Ag | 2024-06-30 | 1.1 M | Franklin Resources Inc | 2024-09-30 | 914.1 K | Ameriprise Financial Inc | 2024-06-30 | 909.3 K | Viking Global Investors Lp | 2024-09-30 | 847.8 K | Hsbc Holdings Plc | 2024-06-30 | 681 K | Artisan Partners Limited Partnership | 2024-09-30 | 663.8 K | Vanguard Group Inc | 2024-09-30 | 9.6 M | Blackrock Inc | 2024-06-30 | 6.9 M |
Zscaler's market capitalization trends
The company currently falls under 'Large-Cap' category with a market capitalization of 32.27 B.Market Cap |
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Zscaler's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | (0.01) | (0.01) | |
| Return On Capital Employed | (0.08) | (0.08) | |
| Return On Assets | (0.01) | (0.01) | |
| Return On Equity | (0.05) | (0.05) |
Determining Zscaler's profitability involves analyzing its financial statements and using various financial metrics to determine if Zscaler is a good buy. For example, gross profit margin measures Zscaler's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Zscaler's profitability and make more informed investment decisions.
Zscaler's Earnings Breakdown by Geography
Please note, the imprecision that can be found in Zscaler's accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of Zscaler. Check Zscaler's Beneish M Score to see the likelihood of Zscaler's management manipulating its earnings.
Evaluate Zscaler's management efficiency
Zscaler has Return on Asset (ROA) of (0.0183) % which means that for every 100 dollars spent on asset, it generated a loss of $0.0183. This is way below average. Likewise, it shows a return on total equity (ROE) of (0.0577) %, which implies that it produced no returns to current stockholders. Zscaler's management efficiency ratios could be used to measure how well Zscaler manages its routine affairs as well as how well it operates its assets and liabilities. Return On Tangible Assets is likely to drop to -0.01 in 2024. Return On Capital Employed is likely to drop to -0.08 in 2024. At this time, Zscaler's Debt To Assets are comparatively stable compared to the past year. Fixed Asset Turnover is likely to gain to 6.93 in 2024, whereas Return On Tangible Assets are likely to drop (0.01) in 2024.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 8.52 | 8.94 | |
| Tangible Book Value Per Share | 5.30 | 5.57 | |
| Enterprise Value Over EBITDA | 411.21 | 431.77 | |
| Price Book Value Ratio | 21.06 | 20.00 | |
| Enterprise Value Multiple | 411.21 | 431.77 | |
| Price Fair Value | 21.06 | 20.00 |
Leadership at Zscaler emphasizes sustainable growth and financial prudence. Our analysis evaluates how these priorities impact the stock's performance in the market.
Beta 0.814 |
Basic technical analysis of Zscaler Stock
As of the 28th of November, Zscaler maintains the Mean Deviation of 1.91, market risk adjusted performance of 0.1131, and Downside Deviation of 3.87. Relative to fundamental indicators, the technical analysis model lets you check existing technical drivers of Zscaler, as well as the relationship between them. Please check out Zscaler standard deviation, value at risk, kurtosis, as well as the relationship between the jensen alpha and semi variance to decide if Zscaler is priced fairly, providing market reflects its latest price of 204.96 per share. Given that Zscaler has jensen alpha of (0.02), we strongly advise you to confirm Zscaler's prevalent market performance to make sure the company can sustain itself at a future point.Zscaler's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Zscaler insiders, such as employees or executives, is commonly permitted as long as it does not rely on Zscaler's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Zscaler insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Robert Schlossman over three months ago Disposition of 1000 shares by Robert Schlossman of Zscaler subject to Rule 16b-3 | ||
Robert Schlossman over three months ago Acquisition by Robert Schlossman of 11144 shares of Zscaler subject to Rule 16b-3 | ||
Rich Michael J. over six months ago Disposition of 4049 shares by Rich Michael J. of Zscaler at 193.1463 subject to Rule 16b-3 | ||
Beer James A over six months ago Insider Trading | ||
Rich Michael J. over six months ago Disposition of 4049 shares by Rich Michael J. of Zscaler at 193.1463 subject to Rule 16b-3 | ||
Amit Sinha over six months ago Sale by Amit Sinha of 626 shares of Zscaler | ||
Amit Sinha over a year ago Zscaler exotic insider transaction detected | ||
Amit Sinha over a year ago Sale by Amit Sinha of 1840 shares of Zscaler | ||
Amit Sinha over a year ago Sale by Amit Sinha of 1840 shares of Zscaler | ||
Amit Sinha over a year ago Zscaler exotic insider transaction detected | ||
Amit Sinha over a year ago Acquisition by Amit Sinha of 38250 shares of Zscaler subject to Rule 16b-3 |
Zscaler's Outstanding Corporate Bonds
Zscaler issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Zscaler uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Zscaler bonds can be classified according to their maturity, which is the date when Zscaler has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| US98981BAA08 Corp BondUS98981BAA08 | View | |
| MPLX LP 52 Corp BondUS55336VAL45 | View | |
| US98980BAA17 Corp BondUS98980BAA17 | View |
Understand Zscaler's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Zscaler's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.043 | |||
| Market Risk Adjusted Performance | 0.1131 | |||
| Mean Deviation | 1.91 | |||
| Semi Deviation | 3.72 | |||
| Downside Deviation | 3.87 | |||
| Coefficient Of Variation | 2155.67 | |||
| Standard Deviation | 3.1 | |||
| Variance | 9.58 | |||
| Information Ratio | 0.0043 | |||
| Jensen Alpha | (0.02) | |||
| Total Risk Alpha | (0.35) | |||
| Sortino Ratio | 0.0034 | |||
| Treynor Ratio | 0.1031 | |||
| Maximum Drawdown | 20.36 | |||
| Value At Risk | (3.37) | |||
| Potential Upside | 3.73 | |||
| Downside Variance | 14.94 | |||
| Semi Variance | 13.83 | |||
| Expected Short fall | (1.94) | |||
| Skewness | (3.38) | |||
| Kurtosis | 20.45 |
| Risk Adjusted Performance | 0.043 | |||
| Market Risk Adjusted Performance | 0.1131 | |||
| Mean Deviation | 1.91 | |||
| Semi Deviation | 3.72 | |||
| Downside Deviation | 3.87 | |||
| Coefficient Of Variation | 2155.67 | |||
| Standard Deviation | 3.1 | |||
| Variance | 9.58 | |||
| Information Ratio | 0.0043 | |||
| Jensen Alpha | (0.02) | |||
| Total Risk Alpha | (0.35) | |||
| Sortino Ratio | 0.0034 | |||
| Treynor Ratio | 0.1031 | |||
| Maximum Drawdown | 20.36 | |||
| Value At Risk | (3.37) | |||
| Potential Upside | 3.73 | |||
| Downside Variance | 14.94 | |||
| Semi Variance | 13.83 | |||
| Expected Short fall | (1.94) | |||
| Skewness | (3.38) | |||
| Kurtosis | 20.45 |
Consider Zscaler's intraday indicators
Zscaler intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Zscaler stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
| Accumulation Distribution | 0.0332 | |||
| Rate Of Daily Change | 1.0 | |||
| Day Median Price | 208.48 | |||
| Day Typical Price | 207.3 | |||
| Market Facilitation Index | 7.03 | |||
| Price Action Indicator | (3.52) | |||
| Relative Strength Index | 74.04 |
Zscaler Corporate Filings
| 22nd of November 2024 Other Reports | ViewVerify | |
F3 | 15th of November 2024 The report used by insiders such as officers, directors, and major shareholders (beneficial owners holding more than 10% of any class of the company's equity securities) to declare their ownership of a company's stock | ViewVerify |
F4 | 10th of October 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
| 13th of September 2024 Other Reports | ViewVerify |
Zscaler Stock media impact
Far too much social signal, news, headlines, and media speculation about Zscaler that are available to investors today. That information is available publicly through Zscaler media outlets and privately through word of mouth or via Zscaler internal channels. However, regardless of the origin, that massive amount of Zscaler data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Zscaler news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Zscaler relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Zscaler's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Zscaler alpha.
Zscaler Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Zscaler can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Zscaler Historical Investor Sentiment
Investor biases related to Zscaler's public news can be used to forecast risks associated with an investment in Zscaler. The trend in average sentiment can be used to explain how an investor holding Zscaler can time the market purely based on public headlines and social activities around Zscaler. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Zscaler's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Zscaler and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Zscaler news discussions. The higher the estimate score, the more favorable the investor's outlook on Zscaler.
Zscaler Corporate Management
| Ashwin Kesireddy | Vice Finance | Profile | |
| Dali Rajic | Chief Officer | Profile | |
| Mike Rich | Chief Sales | Profile | |
| Chris Kozup | Chief Officer | Profile | |
| Brendan Castle | Chief Officer | Profile | |
| Kailash | Founder Architect | Profile |
Already Invested in Zscaler?
The danger of trading Zscaler is mainly related to its market volatility and Company specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of Zscaler is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than Zscaler. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile Zscaler is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.
Additional Tools for Zscaler Stock Analysis
When running Zscaler's price analysis, check to measure Zscaler's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Zscaler is operating at the current time. Most of Zscaler's value examination focuses on studying past and present price action to predict the probability of Zscaler's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Zscaler's price. Additionally, you may evaluate how the addition of Zscaler to your portfolios can decrease your overall portfolio volatility.