Zscaler Rises 9% in 3 Months: Should You Buy, Hold or Sell the Stock?
From Nasdaq: 2025-04-01 09:52:00
Zscaler, Inc. (ZS) stock has shown significant volatility in the past three months but delivered a 9.2% return, outperforming the broader technology sector and the S&P 500. Its cybersecurity solutions are in high demand due to increasing cyber threats, with a 12-month trailing dollar-based retention rate of 115% and growing customer base.
Zscaler has strengthened its government-focused offerings and achieved success with cabinet-level agency clients. The company’s financial outlook is positive, with a projected 22.2% year-over-year increase in revenues for fiscal 2025. ZS stock has consistently beaten earnings estimates and is focused on expanding its AI capabilities through strategic partnerships and acquisitions.
Despite concerns about overvaluation, Zscaler’s innovative AI-based solutions and strong position in the cybersecurity space make it a stock worth holding. The company’s collaborations with industry leaders and focus on AI implementation have contributed to its financial success. ZS stock is currently rated a Hold with potential for future growth in the cybersecurity market.
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