Stocks Are Exhibiting Uncommon Behavior, Indicating Potential Opportunities.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 17 2026
0mins
Should l Buy ZS?
Source: Barron's
- Stock Market Volatility: Individual stock returns have been inconsistent, creating potential buying opportunities for investors.
- Investment Opportunities: Cybersecurity and financial services sectors are highlighted as promising areas for investment.
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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: 151.800
Low
260.00
Averages
325.62
High
390.00
Current: 151.800
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.
US Stocks Decline Amid Ongoing Iran Conflict
- Market Performance: On Tuesday, the S&P 500 Index fell by 0.37%, the Dow Jones Industrial Average decreased by 0.18%, and the Nasdaq 100 Index dropped by 0.77%, reflecting investor concerns over the ongoing conflict in Iran and a general decline in market sentiment.
- Oil Price Fluctuations: WTI crude oil prices surged over 4%, reaching elevated levels due to Iran's missile and drone strikes on Israel and US bases, raising fears about energy supply disruptions that could impact global economic recovery.
- Economic Data: Despite market pressures, Q4 nonfarm productivity remained at 1.8%, while unit labor costs were revised up to 4.4%, exceeding expectations, indicating resilience in the economic fundamentals that may provide some support to the stock market.
- International Tensions: Reports of Saudi Arabia and the UAE aligning with the Iran conflict have heightened market anxiety, as investors are closely monitoring the potential for increased US military deployment, which could escalate tensions and affect global market stability.
See More
P0 Security Partners with Zscaler to Enhance Zero Trust Security
- Strategic Partnership: P0 Security has formed a new technology partnership with cloud security leader Zscaler, joining the Zscaler Technology Alliances Program to help organizations extend Zero Trust access in modern production environments, enhancing security and flexibility.
- Dynamic Authorization Model: P0 Security's Zero Standing Privilege model replaces persistent access with short-lived, policy-driven permissions that are automatically revoked after tasks are completed, thereby strengthening control over sensitive infrastructure and reducing potential risks.
- Addressing Complexity: As enterprises adopt cloud platforms and distributed infrastructure, traditional static permission management methods face challenges; P0 Security's solution helps organizations effectively manage evolving permissions through dynamic, policy-driven authorization models, improving engineering velocity.
- Market Demand: The partnership between P0 Security and Zscaler reflects the growing demand for identity-first security models that provide robust security for both human and agentic identities in hybrid environments while reducing operational friction for developers and platform teams.
See More
Databricks Launches Lakewatch Cybersecurity Product
- New Product Launch: Databricks has introduced Lakewatch, a cybersecurity product leveraging large language models (LLMs) to automate and enhance security measures, with current users including Adobe and National Australia Bank, indicating strong market demand and potential.
- Innovative Pricing Model: Unlike traditional models that charge based on data storage, Lakewatch will charge based on the workload performed by the software, aiming to reduce costs for customers and attract more enterprises to adopt this solution.
- Competitive Market Advantage: As an alternative to traditional security information and event management (SIEM) services, Lakewatch could pose a threat to industry giants like Palo Alto Networks, Cisco, and Google, helping Databricks carve out a niche in the cybersecurity sector.
- Future Growth Potential: With increasing cybersecurity demands, Lakewatch is positioned to support Databricks' $134 billion valuation and pave the way for a potential IPO, with CEO Ali Ghodsi hinting at a possible public offering in 2026.
See More
Financial Performance Analysis of Okta and Zscaler
- Okta Revenue Growth: Okta reported a 12% year-over-year revenue increase for fiscal 2026, nearing $3 billion in subscription revenue, demonstrating resilience in the market despite facing threats from artificial intelligence.
- Zscaler Financial Performance: Zscaler's second-quarter revenue for fiscal 2026 reached $815.8 million, reflecting a 26% year-over-year increase, with annual recurring revenue growing 25% to $3.3 billion, showcasing its competitiveness in the rapidly expanding cybersecurity market.
- Changing Growth Expectations: Okta anticipates a slowdown in revenue growth to 9% for fiscal 2027, while Zscaler has revised its fiscal 2026 revenue growth forecast upward to 24%, indicating a stronger growth trajectory for Zscaler in the market.
- Investment Value Assessment: Although Okta's stock has dropped 30%, it may be undervalued, while Zscaler's stock has also declined by 20%, yet its financial metrics present a more appealing investment opportunity, particularly in AI-driven security products.
See More
Comparing Long-Term Investment Prospects of Okta and Zscaler
- Okta Financial Performance: Okta reported a 12% year-over-year revenue increase for fiscal 2026, nearing $3 billion, but its revenue growth forecast for 2027 has declined to 9%, indicating a slowdown that may affect investor confidence.
- Zscaler's Strong Growth: Zscaler reported $815.8 million in revenue for Q2 of fiscal 2026, a 26% year-over-year increase, with annual recurring revenue growing 25% to $3.3 billion, and it expects 24% revenue growth for the full year, showcasing robust market performance.
- Market Valuation Comparison: While Okta's stock has dropped 30% in the past year, it may be undervalued, whereas Zscaler's stock has also fallen over 20%, but its forward P/E ratio remains above 40, indicating market attractiveness.
- AI Impact and Competition: Okta faces growth challenges due to AI disruptions, while Zscaler is proactively collaborating with AI to launch AI-driven security products, enhancing its competitive edge, making Zscaler a more favorable long-term investment.
See More
Comparing Investment Prospects: Okta vs. Zscaler
- Okta Financial Performance: In fiscal year 2026, Okta achieved a 12% year-over-year revenue increase, reaching nearly $3 billion, yet its revenue growth forecast for 2027 has declined to 9%, indicating a slowdown that could impact its long-term investment appeal.
- Zscaler Strong Growth: Zscaler reported $815.8 million in revenue for Q2 of fiscal 2026, marking a 26% year-over-year increase, with annual recurring revenue growing 25% to $3.3 billion, and it expects 24% revenue growth for the full year, demonstrating financial health and market competitiveness.
- Market Valuation Changes: While Okta's stock has dropped 30% over the past year, its current valuation may be undervalued, whereas Zscaler's stock has also fallen over 20%, but its forward P/E ratio exceeds 40, reflecting market confidence in its future growth.
- AI Impact and Strategic Positioning: Facing growth challenges due to AI, Okta's deceleration is concerning, while Zscaler's collaboration with AI to develop security products showcases its stronger market adaptability, potentially giving it an edge in future competition.
See More
US Stocks Decline Amid Ongoing Iran Conflict
- Market Performance: On Tuesday, the S&P 500 Index fell by 0.37%, the Dow Jones Industrial Average decreased by 0.18%, and the Nasdaq 100 Index dropped by 0.77%, reflecting investor concerns over the ongoing conflict in Iran and a general decline in market sentiment.
- Oil Price Fluctuations: WTI crude oil prices surged over 4%, reaching elevated levels due to Iran's missile and drone strikes on Israel and US bases, raising fears about energy supply disruptions that could impact global economic recovery.
- Economic Data: Despite market pressures, Q4 nonfarm productivity remained at 1.8%, while unit labor costs were revised up to 4.4%, exceeding expectations, indicating resilience in the economic fundamentals that may provide some support to the stock market.
- International Tensions: Reports of Saudi Arabia and the UAE aligning with the Iran conflict have heightened market anxiety, as investors are closely monitoring the potential for increased US military deployment, which could escalate tensions and affect global market stability.
See More
P0 Security Partners with Zscaler to Enhance Zero Trust Security
- Strategic Partnership: P0 Security has formed a new technology partnership with cloud security leader Zscaler, joining the Zscaler Technology Alliances Program to help organizations extend Zero Trust access in modern production environments, enhancing security and flexibility.
- Dynamic Authorization Model: P0 Security's Zero Standing Privilege model replaces persistent access with short-lived, policy-driven permissions that are automatically revoked after tasks are completed, thereby strengthening control over sensitive infrastructure and reducing potential risks.
- Addressing Complexity: As enterprises adopt cloud platforms and distributed infrastructure, traditional static permission management methods face challenges; P0 Security's solution helps organizations effectively manage evolving permissions through dynamic, policy-driven authorization models, improving engineering velocity.
- Market Demand: The partnership between P0 Security and Zscaler reflects the growing demand for identity-first security models that provide robust security for both human and agentic identities in hybrid environments while reducing operational friction for developers and platform teams.
See More
Databricks Launches Lakewatch Cybersecurity Product
- New Product Launch: Databricks has introduced Lakewatch, a cybersecurity product leveraging large language models (LLMs) to automate and enhance security measures, with current users including Adobe and National Australia Bank, indicating strong market demand and potential.
- Innovative Pricing Model: Unlike traditional models that charge based on data storage, Lakewatch will charge based on the workload performed by the software, aiming to reduce costs for customers and attract more enterprises to adopt this solution.
- Competitive Market Advantage: As an alternative to traditional security information and event management (SIEM) services, Lakewatch could pose a threat to industry giants like Palo Alto Networks, Cisco, and Google, helping Databricks carve out a niche in the cybersecurity sector.
- Future Growth Potential: With increasing cybersecurity demands, Lakewatch is positioned to support Databricks' $134 billion valuation and pave the way for a potential IPO, with CEO Ali Ghodsi hinting at a possible public offering in 2026.
See More
Financial Performance Analysis of Okta and Zscaler
- Okta Revenue Growth: Okta reported a 12% year-over-year revenue increase for fiscal 2026, nearing $3 billion in subscription revenue, demonstrating resilience in the market despite facing threats from artificial intelligence.
- Zscaler Financial Performance: Zscaler's second-quarter revenue for fiscal 2026 reached $815.8 million, reflecting a 26% year-over-year increase, with annual recurring revenue growing 25% to $3.3 billion, showcasing its competitiveness in the rapidly expanding cybersecurity market.
- Changing Growth Expectations: Okta anticipates a slowdown in revenue growth to 9% for fiscal 2027, while Zscaler has revised its fiscal 2026 revenue growth forecast upward to 24%, indicating a stronger growth trajectory for Zscaler in the market.
- Investment Value Assessment: Although Okta's stock has dropped 30%, it may be undervalued, while Zscaler's stock has also declined by 20%, yet its financial metrics present a more appealing investment opportunity, particularly in AI-driven security products.
See More
Comparing Long-Term Investment Prospects of Okta and Zscaler
- Okta Financial Performance: Okta reported a 12% year-over-year revenue increase for fiscal 2026, nearing $3 billion, but its revenue growth forecast for 2027 has declined to 9%, indicating a slowdown that may affect investor confidence.
- Zscaler's Strong Growth: Zscaler reported $815.8 million in revenue for Q2 of fiscal 2026, a 26% year-over-year increase, with annual recurring revenue growing 25% to $3.3 billion, and it expects 24% revenue growth for the full year, showcasing robust market performance.
- Market Valuation Comparison: While Okta's stock has dropped 30% in the past year, it may be undervalued, whereas Zscaler's stock has also fallen over 20%, but its forward P/E ratio remains above 40, indicating market attractiveness.
- AI Impact and Competition: Okta faces growth challenges due to AI disruptions, while Zscaler is proactively collaborating with AI to launch AI-driven security products, enhancing its competitive edge, making Zscaler a more favorable long-term investment.
See More
Comparing Investment Prospects: Okta vs. Zscaler
- Okta Financial Performance: In fiscal year 2026, Okta achieved a 12% year-over-year revenue increase, reaching nearly $3 billion, yet its revenue growth forecast for 2027 has declined to 9%, indicating a slowdown that could impact its long-term investment appeal.
- Zscaler Strong Growth: Zscaler reported $815.8 million in revenue for Q2 of fiscal 2026, marking a 26% year-over-year increase, with annual recurring revenue growing 25% to $3.3 billion, and it expects 24% revenue growth for the full year, demonstrating financial health and market competitiveness.
- Market Valuation Changes: While Okta's stock has dropped 30% over the past year, its current valuation may be undervalued, whereas Zscaler's stock has also fallen over 20%, but its forward P/E ratio exceeds 40, reflecting market confidence in its future growth.
- AI Impact and Strategic Positioning: Facing growth challenges due to AI, Okta's deceleration is concerning, while Zscaler's collaboration with AI to develop security products showcases its stronger market adaptability, potentially giving it an edge in future competition.
See More
