Stock of the Day

Zscaler (ZS)

$300.88

+$4.03 (+1.4%)

Market Cap: $46.55B

About Zscaler

Zscaler, Inc. operates as a cloud security company worldwide. The company offers Zscaler Internet Access solution that provides users, workloads, IoT, and OT devices secure access to externally managed applications, including software-as-a-service (SaaS) applications and internet destinations; and Zscaler Private Access solution, which is designed to provide access to managed applications hosted internally in data centers, and private or public clouds.

It also provides Zscaler Digital Experience that measures end-to-end user experience across business applications, as well as provides an easy-to-understand digital experience score for each user, application, and location within an enterprise. In addition, the company offers Posture Control solutions comprising Cloud Security Posture Management that identifies and remediates application misconfigurations in SaaS, infrastructure as a service, and PaaS to reduce risk and ensure compliance with industry and organizational benchmarks; Cloud Infrastructure Entitlement Management that detects and remediates excessive or unused cloud permissions and enforces least privileged access without disrupting productivity; Infrastructure as Code (IaC), which analyzes IaC templates to identify misconfigurations and other security issues prior to deployment to cloud infrastructure; and Vulnerability Scanning and Data Loss Prevention solutions. Its platform modules include Zscaler Central Authority, Zscaler Enforcement Node, and Zscaler Log Servers. The company serves customers in airlines and transportation, conglomerates, consumer goods and retail, financial services, healthcare, manufacturing, media and communications, public sector and education, technology, and telecommunications services industries. The company was formerly known as SafeChannel, Inc., and changed its name to Zscaler, Inc. in August 2008. Zscaler, Inc. was incorporated in 2007 and is headquartered in San Jose, California.

Zscaler Bull Case

Here are some ways that investors could benefit from investing in Zscaler, Inc.:

• The company reported earnings per share (EPS) of $0.84 for the latest quarter, exceeding analysts' expectations, which indicates strong financial performance and potential for growth.
• Revenue for the quarter reached approximately $678 million, reflecting a year-over-year increase of 22.6%, showcasing the company's ability to grow its business significantly.
• The current stock price is around $250, which may present a favorable entry point for investors looking to capitalize on the company's growth trajectory.
• Zscaler, Inc. operates in the cloud security sector, a rapidly growing industry, which positions the company well for future demand as businesses increasingly move to cloud-based solutions.
• Insider ownership is notable, with corporate insiders holding about 18.10% of the stock, suggesting that those with intimate knowledge of the company have confidence in its future prospects.

Zscaler Bear Case

Investors should be bearish about investing in Zscaler, Inc. for these reasons:

• The company has reported a negative return on equity of 0.75%, indicating that it is not currently generating profit from its equity investments, which could be a concern for potential investors.
• With a negative net margin of 1.58%, Zscaler, Inc. is currently operating at a loss, which may raise red flags about its profitability and financial health.
• Analysts forecast that Zscaler, Inc. will post a negative EPS of -0.1 for the current year, suggesting that the company may continue to struggle financially in the near term.
• Recent insider selling activity, including significant sales by key executives, could signal a lack of confidence in the company's short-term performance.
• Despite revenue growth, the company posted lower EPS compared to the same quarter last year, which may indicate challenges in maintaining profitability as it scales.

Recent News

• 1 Monster Growth Stock That's Crushing the Market in 2025 (fool.com)
• Zscaler, Inc. (ZS) Presents at Bank of America 2025 Global Technology Conference Transcript (seekingalpha.com)
• Josh Brown Says Zscaler (ZS) ‘Dominant’ Cybersec Stock for ‘Years to Come’ (msn.com)
• Zscaler's AI innovations raise bar for cybersecurity: analysts (msn.com)
• 1 Growth Stock Down 25% to Buy Right Now, According to Wall Street (fool.com)
• Zscaler, Inc. (ZS) Investor Innovations Briefing (Transcript) (seekingalpha.com)
• Investor Innovations Briefing - Zenith Live 2025 (seekingalpha.com)
• Zscaler launches advanced AI innovations to prevent attacks and safeguard sensitive data (msn.com)
• Zscaler Launches New Solutions to Strengthen and Extend Zero Trust Everywhere (finance.yahoo.com)
• Zscaler’s (ZS) Growth Momentum Intact, Says Robert Baird (msn.com)