Market Strategies Ahead of CPI Report
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6 days ago
0mins
Should l Buy ZS?
Source: CNBC
- Inflation Expectations: According to Art Hogan, Chief Market Strategist at B. Riley Wealth, the market is keenly awaiting the upcoming CPI report, which could significantly influence monetary policy despite the Core PCE remaining above the Fed's target.
- Energy Investment Opportunities: Eric Freedman, CIO of Northern Trust, highlights the energy sector's potential, with the S&P 500 energy sector surging approximately 30% in 2026 due to rising oil prices driven by the Iran conflict, indicating strong investment prospects amid persistent inflation.
- Tech Sector Caution: Wedbush analyst Dan Ives notes that tech investors are adopting a wait-and-see approach ahead of the CPI report, while expressing optimism about cybersecurity investments, anticipating significant budget increases in this area due to AI advancements.
- Income-Focused Strategy: Kevin Simpson from Capital Wealth Planning advises clients to prioritize high-quality companies with strong free cash flow and pricing power to navigate potential market volatility, recommending his Amplify CWP Enhanced Dividend Income ETF (DIVO) for stability.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy ZS?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on ZS
Wall Street analysts forecast ZS stock price to rise
30 Analyst Rating
24 Buy
6 Hold
0 Sell
Strong Buy
Current: 122.680
Low
260.00
Averages
325.62
High
390.00
Current: 122.680
Low
260.00
Averages
325.62
High
390.00
About ZS
Zscaler, Inc. is a cloud security company. The Company has developed a platform incorporating core security functionalities needed to enable fast and secure access to cloud resources based on identity, context and an organization’s policies. Its Zscaler Zero Trust Exchange platform protects thousands of customers from cyberattacks and data loss by securely connecting users, devices, and applications in any location. Its solution is a purpose-built, multi-tenant, distributed cloud platform that incorporates the security functionality needed to enable users, applications, and devices to safely and efficiently utilize authorized applications and services based on an organization’s business policies. It delivers its solutions using a software-as-a-service (SaaS) business model and sells subscriptions to customers to access its cloud platform, together with related support services. It offers a security platform that combines its platform with automated security operations.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Analysis of SaaS Companies' Prospects Amid AI Disruption
- Market Panic Intensifies: SaaS companies are experiencing severe market panic, as evidenced by the iShares Expanded Tech-Software Sector ETF (IGV) dropping over 30% in the past six months, compared to a mere 9% decline in the NASDAQ, indicating a significant loss of investor confidence in SaaS stocks.
- Chegg's Collapse: The online homework help platform Chegg has seen its stock plummet over 99% since its peak in 2021, as its core product has been replaced by free AI tools like ChatGPT, leading to a 40% year-over-year revenue decline, highlighting the tangible threat AI poses to certain SaaS companies.
- HubSpot and Constellation's Dilemma: Despite HubSpot and Constellation Software achieving all-time highs in revenue and free cash flow, their valuations have plummeted, with HubSpot trading at a mere 4 times sales and Constellation at 3 times, reflecting a pessimistic outlook from the market regarding their futures.
- AI as a Double-Edged Sword: While AI poses a threat to SaaS companies, some experts believe it could also serve as an advantage, particularly for firms like ServiceNow and Cadence, which may leverage AI effectively to gain a competitive edge in the evolving market landscape.
See More
US Stocks Close: S&P 500 Hits All-Time High
- Market Performance: On Wednesday, the S&P 500 rose by 0.80% and the Nasdaq 100 by 1.40%, reaching all-time highs, reflecting investor optimism regarding a potential peace deal in the Middle East, which may boost market confidence.
- Economic Data: The April Empire Manufacturing Survey index increased by 11.2 to 11.0, surpassing expectations and indicating improved economic activity that could support the stock market, while the NAHB housing market index fell to a 7-month low, signaling weakness in the real estate sector.
- Interest Rate Dynamics: The 10-year Treasury yield rose to 4.276% as optimism over the US-Iran ceasefire eased safe-haven demand for Treasuries, potentially leading investors to reassess future rate policies amid mixed economic signals.
- Sector Volatility: Software stocks surged, with Atlassian up over 10%, while industrial stocks fell broadly due to concerns over US metals tariffs, exemplified by Carrier Global's decline of over 9%, highlighting significant sector divergence.
See More
US Stocks Show Mixed Movement Amid Optimism Over Middle East Peace Talks
- Market Performance: The S&P 500 Index rose by 0.36%, reaching a two-month high, while the Nasdaq 100 increased by 0.63%, marking a 2.5-month high, reflecting investor optimism surrounding potential peace talks in the Middle East.
- Economic Data: The April Empire Manufacturing Survey reported a rise of 11.2 in the general business conditions index to 11.0, surpassing expectations, indicating a robust manufacturing recovery; however, the April NAHB housing market index fell to 34, signaling weakness in the housing sector that could dampen investor confidence.
- Oil Price Fluctuations: WTI crude oil prices increased by over 1% due to the U.S. naval blockade in the Strait of Hormuz, which could exacerbate global oil and fuel shortages, impacting profitability in related sectors.
- Earnings Season: Q1 earnings for the S&P 500 are projected to grow by 12% year-over-year, but excluding the technology sector, growth is only expected to be around 3%, indicating a slowdown in overall earnings growth that may affect market sentiment.
See More
US Stocks Show Modest Gains Amid Optimism Over Middle East Peace Talks
- Market Performance: The S&P 500 index rose by 0.10% and the Nasdaq 100 by 0.15%, reflecting optimism surrounding potential peace talks in the Middle East, with the S&P 500 reaching a two-month high and the Nasdaq 100 a 2.5-month high.
- Supportive Economic Data: The April Empire manufacturing survey reported a rise of 11.2 in the general business conditions index to a five-month high of 11.0, surpassing expectations of 0.0, indicating a strong economic recovery that could further boost investor confidence.
- Impact of Rising Oil Prices: WTI crude oil prices increased by over 1% as the US implemented a naval blockade in the Strait of Hormuz, potentially exacerbating global oil and fuel shortages, which could affect market supply-demand dynamics and lead to stock volatility.
- Earnings Season Insights: Q1 earnings for the S&P 500 are projected to grow by 12% year-over-year, but excluding the technology sector, growth is only expected at 3%, indicating a lack of overall earnings momentum that may affect long-term investor confidence.
See More
Wedbush Highlights Cybersecurity Tech Stocks Amid Market Turbulence
- Market Turbulence Warning: Wedbush analysts warn of market turbulence, particularly in the context of the Iran War with oil prices exceeding $100, testing investor sentiment and highlighting the need to focus on current tech stock opportunities.
- Cybersecurity Investment Picks: Recommended cybersecurity firms include CrowdStrike, Palo Alto Networks, Zscaler, Check Point Software, and Rubrik, with analysts emphasizing that the rapid adoption of AI will drive increased demand for these companies.
- AI Integration Trend: Analysts believe that integrating AI into tech stacks is a top IT priority for enterprises, and the current market valuations do not adequately reflect this dynamic, leading to an overblown sell-off in software stocks.
- Future Outlook: Despite market concerns that AI companies may shift their missions, Wedbush analysts, after discussions with multiple CIOs, assert that enterprises will focus on partnerships with AI workflows, significantly enhancing AI monetization opportunities in the coming years.
See More
Middle East Conflict Impacts Markets, Analyst Rating Changes
- Netflix Upgrade: Goldman Sachs upgraded Netflix (NFLX) from Neutral to Buy, projecting its advertising business to grow to approximately $9.5 billion by 2030, which will drive double-digit revenue growth over the next three to four years, thereby enhancing its strategic focus on content investment and shareholder returns.
- Carvana Downgrade: Bank of America downgraded Carvana (CVNA) from Buy to Neutral, with analysts noting that increasing industry competition may challenge medium-term growth, although the company still holds long-term growth potential, reflecting a cautious outlook on its future prospects.
- ServiceNow Downgrade: UBS downgraded ServiceNow (NOW) from Buy to Neutral, expecting revenue growth to be below normal levels in the coming quarters and a slight decline in remaining performance obligations, indicating a weakened confidence in its positioning in the AI era.
- LyondellBasell Downgrade: Bank of America downgraded LyondellBasell (LYB) from Neutral to Underperform, arguing that the recent stock price increase driven by geopolitical factors has already been priced in, despite raising earnings forecasts for 2026-28, indicating improved near-term earnings power.
See More
Analysis of SaaS Companies' Prospects Amid AI Disruption
- Market Panic Intensifies: SaaS companies are experiencing severe market panic, as evidenced by the iShares Expanded Tech-Software Sector ETF (IGV) dropping over 30% in the past six months, compared to a mere 9% decline in the NASDAQ, indicating a significant loss of investor confidence in SaaS stocks.
- Chegg's Collapse: The online homework help platform Chegg has seen its stock plummet over 99% since its peak in 2021, as its core product has been replaced by free AI tools like ChatGPT, leading to a 40% year-over-year revenue decline, highlighting the tangible threat AI poses to certain SaaS companies.
- HubSpot and Constellation's Dilemma: Despite HubSpot and Constellation Software achieving all-time highs in revenue and free cash flow, their valuations have plummeted, with HubSpot trading at a mere 4 times sales and Constellation at 3 times, reflecting a pessimistic outlook from the market regarding their futures.
- AI as a Double-Edged Sword: While AI poses a threat to SaaS companies, some experts believe it could also serve as an advantage, particularly for firms like ServiceNow and Cadence, which may leverage AI effectively to gain a competitive edge in the evolving market landscape.
See More
US Stocks Close: S&P 500 Hits All-Time High
- Market Performance: On Wednesday, the S&P 500 rose by 0.80% and the Nasdaq 100 by 1.40%, reaching all-time highs, reflecting investor optimism regarding a potential peace deal in the Middle East, which may boost market confidence.
- Economic Data: The April Empire Manufacturing Survey index increased by 11.2 to 11.0, surpassing expectations and indicating improved economic activity that could support the stock market, while the NAHB housing market index fell to a 7-month low, signaling weakness in the real estate sector.
- Interest Rate Dynamics: The 10-year Treasury yield rose to 4.276% as optimism over the US-Iran ceasefire eased safe-haven demand for Treasuries, potentially leading investors to reassess future rate policies amid mixed economic signals.
- Sector Volatility: Software stocks surged, with Atlassian up over 10%, while industrial stocks fell broadly due to concerns over US metals tariffs, exemplified by Carrier Global's decline of over 9%, highlighting significant sector divergence.
See More
US Stocks Show Mixed Movement Amid Optimism Over Middle East Peace Talks
- Market Performance: The S&P 500 Index rose by 0.36%, reaching a two-month high, while the Nasdaq 100 increased by 0.63%, marking a 2.5-month high, reflecting investor optimism surrounding potential peace talks in the Middle East.
- Economic Data: The April Empire Manufacturing Survey reported a rise of 11.2 in the general business conditions index to 11.0, surpassing expectations, indicating a robust manufacturing recovery; however, the April NAHB housing market index fell to 34, signaling weakness in the housing sector that could dampen investor confidence.
- Oil Price Fluctuations: WTI crude oil prices increased by over 1% due to the U.S. naval blockade in the Strait of Hormuz, which could exacerbate global oil and fuel shortages, impacting profitability in related sectors.
- Earnings Season: Q1 earnings for the S&P 500 are projected to grow by 12% year-over-year, but excluding the technology sector, growth is only expected to be around 3%, indicating a slowdown in overall earnings growth that may affect market sentiment.
See More
US Stocks Show Modest Gains Amid Optimism Over Middle East Peace Talks
- Market Performance: The S&P 500 index rose by 0.10% and the Nasdaq 100 by 0.15%, reflecting optimism surrounding potential peace talks in the Middle East, with the S&P 500 reaching a two-month high and the Nasdaq 100 a 2.5-month high.
- Supportive Economic Data: The April Empire manufacturing survey reported a rise of 11.2 in the general business conditions index to a five-month high of 11.0, surpassing expectations of 0.0, indicating a strong economic recovery that could further boost investor confidence.
- Impact of Rising Oil Prices: WTI crude oil prices increased by over 1% as the US implemented a naval blockade in the Strait of Hormuz, potentially exacerbating global oil and fuel shortages, which could affect market supply-demand dynamics and lead to stock volatility.
- Earnings Season Insights: Q1 earnings for the S&P 500 are projected to grow by 12% year-over-year, but excluding the technology sector, growth is only expected at 3%, indicating a lack of overall earnings momentum that may affect long-term investor confidence.
See More
Wedbush Highlights Cybersecurity Tech Stocks Amid Market Turbulence
- Market Turbulence Warning: Wedbush analysts warn of market turbulence, particularly in the context of the Iran War with oil prices exceeding $100, testing investor sentiment and highlighting the need to focus on current tech stock opportunities.
- Cybersecurity Investment Picks: Recommended cybersecurity firms include CrowdStrike, Palo Alto Networks, Zscaler, Check Point Software, and Rubrik, with analysts emphasizing that the rapid adoption of AI will drive increased demand for these companies.
- AI Integration Trend: Analysts believe that integrating AI into tech stacks is a top IT priority for enterprises, and the current market valuations do not adequately reflect this dynamic, leading to an overblown sell-off in software stocks.
- Future Outlook: Despite market concerns that AI companies may shift their missions, Wedbush analysts, after discussions with multiple CIOs, assert that enterprises will focus on partnerships with AI workflows, significantly enhancing AI monetization opportunities in the coming years.
See More
Middle East Conflict Impacts Markets, Analyst Rating Changes
- Netflix Upgrade: Goldman Sachs upgraded Netflix (NFLX) from Neutral to Buy, projecting its advertising business to grow to approximately $9.5 billion by 2030, which will drive double-digit revenue growth over the next three to four years, thereby enhancing its strategic focus on content investment and shareholder returns.
- Carvana Downgrade: Bank of America downgraded Carvana (CVNA) from Buy to Neutral, with analysts noting that increasing industry competition may challenge medium-term growth, although the company still holds long-term growth potential, reflecting a cautious outlook on its future prospects.
- ServiceNow Downgrade: UBS downgraded ServiceNow (NOW) from Buy to Neutral, expecting revenue growth to be below normal levels in the coming quarters and a slight decline in remaining performance obligations, indicating a weakened confidence in its positioning in the AI era.
- LyondellBasell Downgrade: Bank of America downgraded LyondellBasell (LYB) from Neutral to Underperform, arguing that the recent stock price increase driven by geopolitical factors has already been priced in, despite raising earnings forecasts for 2026-28, indicating improved near-term earnings power.
See More
