The yield on the benchmark 10-year Treasury fell for a second day to 3.636%, from 3 . 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. Broadcom led earnings movers late. These Stocks Offer Shelter From Bank Turmoil. But even so, the company beat expectations in the second quarter, promised to beat them again in Q3 -- and indeed, to keep on beating them all year long. Meanwhile, human-resources cloud-software company Workday Inc. Zscaler forecast adjusted earnings of about 39 cents a share on revenue of $396 million to $398 million for the fiscal third quarter. Analysts expect Zscaler will report earnings per share of $0.421. We can see that whereas peers Okta (OKTA) secures identity, CrowdStrike (CRWD) secures endpoints (devices), ZS takes care of the rest of the process before allowing access to the protected applications. "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. Zscaler expects full fiscal-year 2022 revenue to be between $1.045 billion and $1.05 billion and adjusted earnings to be between 54 cents and 56 cents per share. Unless the analysts have really missed the mark, these strong revenue forecasts should keep the share price buoyant. Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing. One of our trending tickers right now, Zscaler. Im ready for my golden years: Im 62. I wrote this article myself, and it expresses my own opinions. Analyst Assessment: Several analyst firms lowered price targets on the stock following Zscaler's financial results: ZS Price Action: Zscaler has traded as low as $157.03 and as high as $376.11 over a 52-week period. Income (loss) from operations: GAAP loss from operations was $55.7 million, or 13% of . Looking for a portfolio of ideas like this one? Zscaler expects revenue of $241 million vs. estimates of $224.8 million. Have feedback on this article? Meanwhile, the company expects full-year earnings of $1.52 to $1.53 on about $1.56 billion revenue and billings of $1.94 billion to $1.95 billion. Zscaler Stock Shoots Up on Boost to Revenue Outlook, Zscalers stock soars 20% as company raises its forecast far above expectations, Zscaler Shares Jump 20% on Upbeat FY23 Outlook. 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. (844) 978-6257. 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. It offers Zero Trust Exchange, Zscaler Client Connector, Zscaler Internet Access, Zscaler Private Access, Zscaler B2B, Zscaler Cloud Protection, and Zscaler Digital Experience. Adding additional users or departments in an organization is also another way to boost net dollar retention. The companys financials are strong - very strong in fact. The cloud-native cybersecurity company reported quarterly earnings of 13 cents per share, which beat the estimate of 11 cents per share. 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. I am not receiving compensation for it (other than from Seeking Alpha). Find out whether Zscaler is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health. The only time you'd be truly comfortable seeing a P/S as steep as Zscaler's is when the company's growth is on track to outshine the industry decidedly. Heading into fiscal. Please disable your ad-blocker and refresh. SAN JOSE, Calif., June 01, 2023 (GLOBE NEWSWIRE) -- Zscaler, Inc. (Nasdaq: ZS), the leader in cloud security, today announced financial results for its third quarter of fiscal year 2023, ended April 30, 2023. Unlike other tech stocks, Zscaler is not trading at compelling valuations today. Upgrade to MarketBeat All Access to add more stocks to your watchlist. Since its price has surged higher, Zscaler may be sending strong sell signals at present with a price-to-sales (or "P/S") ratio of 14.1x, when you consider almost half of the companies in the Software industry in the United States have P/S ratios under 4.2x and even P/S lower than 2x aren't out of the ordinary. *Average returns of all recommendations since inception. The May jobs 6/02/2023 Should You Buy Zscaler (ZS) Ahead of Earnings? , The Cybersecurity Stock Soars. It's good to see that Zscaler is outpacing expectations. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Visit a quote page and your recently viewed tickers will be displayed here. The product can also provide Zero Trust Network Access (ZTNA) to internally managed applications, hosted internally or on the cloud, through its Zscaler Private Access (ZPA) solution. Premarket Mover: Confluent Inc (CFLT) Up 2.59%, Kopin Corporation (KOPN) is up 2.64% Friday In Premarket Trading, Bridgeline Digital Inc (BLIN) Down 2.91% in Premarket Trading, Taiwan Semiconductor Mfg. It trades at EV/sub revenue multiple of 9.4x and 7.4x, respectively. Thats the model supporting identity-management software company Okta Inc. Entering text into the input field will update the search result below. Learn how you can make more money with IBD's investing tools, top-performing stock lists, and educational content. Like other tech stocks, Zscaler is down nearly 40% from all-time highs. 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. Copyright 2023. The company also modestly raised full-year guidance, which the market liked as well. I previously covered the stock here, stating that the stock was still overvalued in spite of a mild correction. Overview Stock Screener Earnings Calendar Sectors Nasdaq | ZS U.S.: Nasdaq Zscaler Inc. Watch list Premarket Last Updated: May 30, 2023 7:27 a.m. EDT Delayed quote $ 133.25 2.63 2.01% Before. Free doughnuts? Finally, its Zscaler for IOT/OT leverages its platform to lower the risk of data loss and cyberattacks by providing zero trust security for connected IoT and OT devices. ZS is richly valued based on estimates 3 years out, yet many other tech stocks are trading cheaply based on this year or even last years financial results. HACK, Get Zscaler News Delivered to You Automatically. What is the Penalty for Excess Contributions to an IRA? Follow him on Twitter at: @wmwitkowski. Number two, if CIOs understand that they can save money to reduce cost, they're willing to engage. Like other tech stocks, Zscaler is down nearly 40% from all-time highs. Traditional appliances, firewalls have been bought at the technical level, we started at a CIO level, not even CISO, CIO level. Zscaler Inc Stock Price History. Zscaler Inc (ZS) stock is down -1.06% while the S&P 500 has gained 0.54% as of 11:06 AM on Thursday, Jun 1. Now why is that? 326 E 8th St #105, Sioux Falls, SD 57103 Also, billings rose 71% to $247.7 million, blowing past estimates of $204 million. ET despite exceeding earnings estimates handily last night. Zscaler Pre-Announces Strong Results. Listen in to hear why stock market insiders are referring to Zscaler as the 'Next Big Thing' with similar predictions to SalesForce, Workday and ServiceNow. Big profits are available for the taking, but you must act now. I just mentioned that the company has guided for long-term 22% operating margins. Zscaler Unusual Options Activity For May 30. ZPA can grant access to an app without exposing its identity or location. MW Forecast: Nonfarm payrolls estimated to rise 190,000 in May. Because that's where extra scrutiny comes in. ZS describes its role in cybersecurity below. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. Cookie Notice (). That dynamic was also evident in Salesforce Inc.s Cost basis and return based on previous market day close. Excellent balance sheet with moderate growth potential. What happened Shares of cybersecurity specialist Zscaler ( ZS 3.14%) are falling today, down 10% as of 11 a.m. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. View which stocks are hot on social media with MarketBeat's trending stocks report. One of Jack Kellogg's main indicators is the volume-weighted average . It seems the market expects this form will continue into the future, hence the elevated P/S ratio. Much of Zscalers report mirrored that of Oktas: Reluctance of customers to close deals in the uncertain economic environment, longer times to close deals, and 90%-plus customer retention rates that are allowing the platforms to upsell to existing customers. 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. and a 20% drop on the ETFMG Prime Cyber Security ETF View the latest news, buy/sell ratings, SEC filings and insider transactions for your stocks. Meanwhile, there are always new upstarts looking to disrupt current technology. Given where the rest of tech trades, I recommend avoiding the stock at current levels in favor of more attractive alternatives. Zscaler stock jumped in 2020 amid a corporate shift to remote work during the early coronavirus crisis. The Motley Fool has positions in and recommends Zscaler. October 25, 2022 10:10 AM 0 A Zscaler service outage is causing loss of connectivity, packet loss, and latency for customers, with no information available as to what is causing the disruption. Shares of cybersecurity specialist Zscaler (ZS -0.29%) are falling today, down 10% as of 11 a.m. We are seeing a very high degree engagement with our customers. Click Here to get the full Stock Report for Zscaler Inc stock. The IBD Live team paid tribute to William ONeil and his legacy. Multiple Insiders Sold SpartanNash Shares Presenting Weak Signs For Investors \. Portions of this content protected by US Patent numbers 7,865,496, 7,856,390, and 7,716,116. Get daily stock ideas from top-performing Wall Street analysts. About 6 years ago, we started a team for business value assessment. For the best MarketWatch.com experience, please update to a modern browser. that is still arguably too rich. -0.73%. Founded as a cloud-first IT solution, Jay Chaudhry (Founder and CEO) had the foresight to see the future of IT infrastructure back in 2007. BMO Capital analyst Keith Bachman maintainedZscalerwith an Outperform rating and loweredthe price target from$415to$270. Since then, the stock price has plunged almost threefold. said earlier in the week it was still on track for growth targets, despite a setback, and offer a conservative guidance. Visit a quote page and your recently viewed tickers will be displayed here. ET despite exceeding earnings estimates handily last night. I wrote this article myself, and it expresses my own opinions. I wrote this article myself, and it expresses my own opinions. We've seen a record pipeline. Despite some risks, such as economic slowdown and competition, Zscaler's current valuation makes it an attractive investment opportunity. Is this happening to you frequently? Discussing the impact of the macro environment on ZS at a Morgan Stanley conference earlier this year, CEO Jay Chaudhry said: Yes, macro is getting tighter. Learn More. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. Zscaler said it plans to expand product integrations with CrowdStrike Holdings (CRWD), which reports earnings on Wednesday. Get in touch with us directly. 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. ZS still has plenty of room to grow, both adding new customers as well as through upselling to its existing customer base. While I expect the company to continue growing at rapid rates, the current stock price suggests that investors are counting on growth rates to remain at unsustainable levels. On the day-- or premarket, you're seeing that down by nearly 12%. The company then proceeded to promise another sales beat in Q3. Unlike many other highly buyable tech stocks, ZS still trades at elevated multiples. A 24-year-old stock trader who made over $8 million in 2 years shares the 4 indicators he uses as his guides to buy and sell. Although, it's not wise to just take the P/S at face value as there may be an explanation why it's so lofty. Don't forget that there may be other risks. ET despite exceeding earnings estimates handily last night. Shares in the cybersecurity firm initially popped on the earnings release. Get 30 Days of MarketBeat All Access Free, By creating a free account, you agree to our, 20 Best Healthcare Dividend Stocks to Invest in, Nordstrom's Earnings Beat, A Rally In The Making, Money stored in Venmo and other payment apps could be vulnerable, financial watchdog warns. 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. 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.. -0.29% ZS is a cybersecurity company which protects applications using its zero trust exchange. In the pre-cloud era, companies typically secured their property using perimeter defenses but that kind of defense does not work in the cloud era where applications can be accessed by any other application. Cybersecurity is still a priority, but there is certainly more scrutiny across the board. Get these newsletters delivered to your inbox & more info about our products & services. Data coming in 30 minutes. Cyber interest is not going down. American Consumer News, LLC dba MarketBeat 2010-2023. Therefore, I'm a little surprised to see the market respond this positively today. Historical and current end-of-day data provided by FACTSET. If we instead assume 40% long-term margins and a 2x PEG ratio, then ZS might trade at 24x sales by 2025, suggesting 100% upside over the next 3 years. 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. That represents 54% growth next quarter and 48% growth in the fourth quarter. I am not receiving compensation for it (other than from Seeking Alpha). Notice: Information contained herein is not and should not be construed as an offer, solicitation, or recommendation to buy or sell securities. I am long all holdings of the Best of Breed portfolio. Number one, due to tight environment, is there enough demand? Growth stocks have crashed. Sign up for MarketBeat All Access to gain access to MarketBeat's full suite of research tools: Sign up to receive the latest news and ratings for ZS and its competitors with MarketBeat's FREE daily newsletter. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. Please. The information and content are subject to change without notice. Monthly jobs data is driving large swings in U.S. stocks this year. Heading into fiscal Q2. ZS notes that there are 20,000 companies with more than 2,000 employees, and that its currently only penetrated around 10% of this market. Zscaler Inc's ( ZS) price is currently down 19.6% so far this month. Our look into Zscaler shows that its P/S ratio remains high on the merit of its strong future revenues. 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. The company has said that about 80% of its ZIA deals are Blue Coat replacement deals, and that there are still a lot of large companies still using this older technology, including some very large banks. Zscaler, Inc. engages in the provision of a cloud-based internet security platform. You know, when your top line, you know, slows down, you're going to get that natural leverage. And it raised full-year bookings guidance by about 1% to 2% to $1.970 billion to $1.974 billion. I have no business relationship with any company whose stock is mentioned in this article. Zscaler Inc (NASDAQ:ZS) is trading significantly lower Friday after the company reported fiscal 2022 second-quarter financial results and issued guidance that disappointedsomeanalysts. Learn about the media coverage comparison. When Should You Buy DENTSPLY SIRONA Inc. (NASDAQ:XRAY)? Zscaler had last forecast adjusted earnings of $1.23 to $1.25 a share on revenue of about $1.53 billion and billings of $1.93 billion to$1.94billion for the year, and analysts were estimating $1.24 a share on revenue of $1.53 billion and billings of $1.93 billion for the year. Is Zscaler (ZS) Likely to Surpass Q3 Earnings Estimates? Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. Turning to the outlook, the next three years should generate growth of 29% per annum as estimated by the analysts watching the company. Read: These Three Horsemen of cybersecurity most likely to weather slowing demand, Morgan Stanley says. Analysts surveyed by FactSet had forecast earnings of 29 cents a share on revenue of $340.7 million, based on Zscalers forecast of 29 cents to 30 cents a share on revenue of $365.5 million to $366 million .
Taste Of Rome Festival 2022,
Where Are Gola Sneakers Made,
Best 5u Badminton Racket,
Volvo Financial Services Customer Service,
Articles W