Zscaler Faces Bearish Pressure Before Q2: Can Earnings Spark A Reversal?

Zscaler Inc ZS will be reporting its second-quarter earnings on Wednesday. Wall Street expects 69 cents in EPS and $635.56 million in revenues as the company reports after market hours.

The stock is down 7.09% over the past year, up 5.54% year-to-date.

Let’s look at what the charts indicate for Zscaler stock and how the stock currently maps against Wall Street estimates.

Read Also: Top Wall Street Forecasters Revamp Zscaler Price Expectations Ahead Of Q2 Earnings

Zscaler Stock Strongly Bearish Ahead Of Q2 Earnings

Chart created using Benzinga Pro

The company’s stock is currently in a strongly bearish trend, trading below its five-day, 20-day and 50-day exponential moving averages. The stock's price of $192.17 is below key simple moving averages, including the eight-day at $193.62, 20-day at $203.06 and 50-day at $195.44, all reinforcing the downward momentum.

Additionally, the Moving Average Convergence Divergence (MACD) indicator at a negative 2 suggests that bearish momentum remains intact.

However, there are signs of buying pressure, which could indicate a potential shift in sentiment. Zscaler's 200-day simple moving average at $188.51 is still below the current stock price, signaling longer-term support. Meanwhile, the Relative Strength Index (RSI) at 43.06 suggests that the stock is not yet oversold but could be approaching a level where buyers step in.

Investors should monitor whether Zscaler stock can reclaim key moving averages, as a break above these resistance levels could confirm a bullish reversal.

Analysts See 16% Upside

Ratings & Consensus Estimates: The consensus analyst rating on Zscaler stock stands at a Buy currently with a price target of $227.79. The latest analyst ratings from Rosenblatt, Barclays and Mizuho imply a 15.59% upside for Zscaler stock, with a $221.67 average price target.

Price Action: Zscaler stock was trading at $192 at the time of publication.

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