Positive Earnings Estimates Indicate Potential Growth for Zscaler (ZS) Stock

Zscaler (ZS) presents a compelling investment opportunity as its earnings outlook continues to improve significantly. The stock has demonstrated strong performance in recent times, and analysts remain optimistic, making upward revisions to their earnings estimates for the company.

The ongoing increase in earnings estimate revisions reflects growing confidence among analysts regarding the earnings potential of this cloud-based information security firm. Historical data supports a direct correlation between earnings estimate trends and short-term stock price movements. This principle is a fundamental component of our stock evaluation tool, the Zacks Rank.

The Zacks Rank employs a five-grade system, ranging from a Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell). This system has a verified track record of outperforming the market, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.

Revisions for Current Quarter Estimates

For the upcoming quarter, analysts forecast Zscaler will earn $0.68 per share, representing a decline of 10.53% compared to the same quarter last year.

In the last 30 days, the Zacks Consensus Estimate for Zscaler has risen by 59.17%, driven by six upward revisions and three downward adjustments.

Revisions for Current Year Estimates

Looking ahead to the full year, earnings are projected to reach $2.98 per share, reflecting a year-over-year decrease of 6.58%.

The current year’s revisions trend is also encouraging, with 11 estimates elevated in the past month and no downward revisions reported. The consensus estimate during this time has jumped by 67.29%.

Favorable Zacks Rank Position

The positive changes in estimates have led Zscaler to secure a Zacks Rank #2 (Buy). This rank serves as a valuable investment tool, effectively enabling investors to leverage earnings estimate revisions for informed investment decisions. You can find a complete list of today’s Zacks #1 Rank (Strong Buy) stocks easily available online.

Research indicates that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) significantly outperform the S&P 500 index.

Conclusion

In recent weeks, Zscaler shares have appreciated by 8.3%, indicating strong investor confidence driven by positive earnings revisions. For those looking to enhance their investment portfolio, now may be an opportune time to consider adding Zscaler to capitalize on its promising earnings growth potential.

Zscaler, Earnings, Growth