- United States
- /
- Software
- /
- NasdaqGS:ZS
Zscaler (NasdaqGS:ZS) Expands Zero Trust Exchange with Launch of Zscaler Cellular
Reviewed by Simply Wall St
Zscaler (NasdaqGS:ZS) recently unveiled Zscaler Cellular, an advancement augmenting its Zero Trust Exchange platform with IoT/OT device security, which may have influenced its 78% share price increase over the last quarter. This launch aligns with Zscaler's upward revision of full-year guidance, suggesting bolstered investor confidence. Furthermore, the appointment of a new CFO and enhanced AI security capabilities, alongside market stability observed in Nasdaq Composite's incremental 13% annual growth, added weight to Zscaler's performance. The wider market's restraint against global tariff tensions might have muted impacts, but Zscaler's specific developments certainly spotlighted its strategic evolution in cybersecurity.
Every company has risks, and we've spotted 1 weakness for Zscaler you should know about.
Find companies with promising cash flow potential yet trading below their fair value.
The recent introduction of Zscaler Cellular and enhancements to the Zero Trust Exchange platform have bolstered Zscaler's growth narrative, underscoring its competitive edge in securing IoT/OT devices within its broader cybersecurity suite. This development likely supports positive sentiment around Zscaler's ability to capitalize on increasing demand for cloud security amid the expanding remote work landscape. This is further corroborated by an upward revision in full-year guidance, potentially impacting both revenue and earnings forecasts positively, although competition and regulatory challenges remain significant threats to sustained momentum.
Over the past five years, Zscaler shares have achieved a substantial total return of 163.07%, reflecting strong investor confidence and robust market positioning. This is contextualized by a 17.9% return within the software industry over the past year, while Zscaler shares have outperformed the broader market with a return exceeding the US market's 12.5% gain.
The disparity between the current share price of US$307.32 and the analyst consensus price target of US$314.35 suggests a marginal appreciation potential of approximately 2.2%. This indicates that the market currently aligns closely with analysts' fair value assessments, though potential revenue growth and projected earnings, as estimated by analysts, could influence future valuation adjustments. With a revenue figure of $2.55 billion and earnings forecasted to turn profitable by 2028, Zscaler's strategic enhancements and market responsiveness will be crucial in achieving these targets.
Examine Zscaler's earnings growth report to understand how analysts expect it to perform.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Valuation is complex, but we're here to simplify it.
Discover if Zscaler might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
Access Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
About NasdaqGS:ZS
High growth potential with excellent balance sheet.
Similar Companies
Market Insights
Community Narratives
