Zscaler (ZS) stock rebounds with strong financials, partnerships, and growth potential

From NASDAQ: 2024-07-10 09:10:00

Zscaler, Inc. (ZS) stock saw a remarkable 98% surge in 2023, reaching a 52-week high of $259.61 on Feb 9, 2024. After trading lower, ZS stock rebounded post Q3 fiscal 2024 earnings on May 30, climbing 26% since. Despite a 10.9% YTD decline, the stock offers a buying opportunity at $201.63 as of Jul 9.

Zscaler’s stock performance is backed by trading above its 50-day and 200-day moving averages, indicating strong upward momentum and price stability. The positive technical indicators reflect market confidence and optimism in Zscaler’s financial standing and future potential.

Zscaler has shown impressive financial results, surpassing earnings estimates in the last four quarters. Q3 fiscal 2024 saw a 32% revenue and 83% non-GAAP EPS increase YoY. With a $2.14 billion revenue estimate for fiscal 2024, 32.4% YoY growth and strong long-term earnings, Zscaler demonstrates stability and growth potential.

Zscaler’s commitment to innovation is evident in its platform enhancements and strategic acquisitions. Initiatives like ZDX and Zero Trust Exchange advancements underscore its focus on providing advanced security solutions. Recent acquisition of Avalor strengthens its product portfolio and market position for continued growth and customer empowerment.

With a diverse customer base across sectors like finance and healthcare, Zscaler has achieved high customer satisfaction and loyalty. At the end of Q3 fiscal 2024, it had 523 customers with $1 million+ ARR and added 26 such customers during the quarter. As Zscaler continues to expand its customer base, sustained revenue growth is expected.

Zscaler’s partnerships with major tech providers like Microsoft, AWS, and Google Cloud enhance its market presence and cloud security offerings. Collaborations with Microsoft on Zero Trust Exchange and advanced security solutions for AWS environments demonstrate Zscaler’s commitment to secure digital transformation for enterprises.

For investors seeking exposure to the cybersecurity market, Zscaler offers a strong case with its financial performance, market position, and industry trends. With a Zacks Rank #1 and favorable Growth Score, ZS presents solid investment opportunities. Its innovative solutions, partnerships, and financial health position it well for continued growth.



Read more at NASDAQ: Zscaler (ZS) Stock Reverses Course Upward: Time to Buy?