Decoding 25 Analyst Evaluations For Zscaler

Ratings for Zscaler ZS were provided by 25 analysts in the past three months, showcasing a mix of bullish and bearish perspectives.

The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.

Analysts have set 12-month price targets for Zscaler, revealing an average target of $212.68, a high estimate of $270.00, and a low estimate of $165.00. Experiencing a 6.92% decline, the current average is now lower than the previous average price target of $228.48.

Diving into Analyst Ratings: An In-Depth Exploration

The standing of Zscaler among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Zscaler. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Zscaler compared to the broader market.
• Price Targets: Analysts provide insights into price targets, offering estimates for the future value of Zscaler's stock. This comparison reveals trends in analysts' expectations over time.

Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of Zscaler's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.

Stay up to date on Zscaler analyst ratings.

All You Need to Know About Zscaler

Zscaler is a software-as-a-service, or SaaS, firm focusing on providing cloud-native cybersecurity solutions to primarily enterprise customers. Zscaler's offerings can be broadly partitioned into Zscaler Internet Access, which provides secure access to external applications, and Zscaler Private Access, which provides secure access to internal applications. The firm is headquartered in San Jose, California, and went public in 2018.

Zscaler's Financial Performance

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

Positive Revenue Trend: Examining Zscaler's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 30.3% as of 31 July, 2024, showcasing a substantial increase in top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Information Technology sector.

Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of -2.51%, the company may need to address challenges in effective cost control.

Return on Equity (ROE): Zscaler's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of -1.26%, the company may face hurdles in achieving optimal financial returns.

Return on Assets (ROA): Zscaler's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of -0.33%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: Zscaler's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.97.

What Are Analyst Ratings?

Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

Which Stocks Are Analysts Recommending Now?

Benzinga Edge gives you instant access to all major analyst upgrades, downgrades, and price targets. Sort by accuracy, upside potential, and more. Click here to stay ahead of the market.

This article was generated by Benzinga's automated content engine and reviewed by an editor.