Decoding 21 Analyst Evaluations For Zscaler

Ratings for Zscaler ZS were provided by 21 analysts in the past three months, showcasing a mix of bullish and bearish perspectives.

The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.

Analysts have recently evaluated Zscaler and provided 12-month price targets. The average target is $250.9, accompanied by a high estimate of $290.00 and a low estimate of $214.00. This upward trend is apparent, with the current average reflecting a 1.06% increase from the previous average price target of $248.27.

Understanding Analyst Ratings: A Comprehensive Breakdown

The standing of Zscaler among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Zscaler. This insight gives a snapshot of analysts' perspectives on 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.

Get to Know Zscaler Better

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: A Financial Overview

Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.

Revenue Growth: Zscaler displayed positive results in 3 months. As of 31 January, 2024, the company achieved a solid revenue growth rate of approximately 35.45%. This indicates a notable increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Information Technology sector.

Net Margin: Zscaler's net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of -5.42%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Zscaler's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of -3.22%, the company may face hurdles in achieving optimal financial returns.

Return on Assets (ROA): Zscaler's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of -0.75%, the company may face hurdles in achieving optimal financial performance.

Debt Management: Zscaler's debt-to-equity ratio is below the industry average at 1.29, reflecting a lower dependency on debt financing and a more conservative financial approach.

The Core of Analyst Ratings: What Every Investor Should Know

Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

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