Stock Price & Analysis

Based on the provided data and technical indicators, here's a concise analysis for ZS stock:

Technical Analysis The stock is currently trading at $188.06, showing mixed signals in the near term. The RSI(14) at 47.17 indicates neutral momentum, while the MACD at -2.36 suggests some bearish pressure. The price is hovering around its 20-day SMA of $185.94, indicating a consolidation phase.

Fibonacci Levels Key resistance levels are at $191.70 (R1) and $194.36 (R2), while support levels are at $183.11 (S1) and $180.45 (S2). The current price is near the Fibonacci pivot point of $187.41.

Recent Developments Biden's executive order on cybersecurity has been positive for Zscaler, particularly benefiting its identity protection solutions. This could provide fundamental support for the stock in the near term.

Analyst Sentiment Recent analyst ratings show a generally bullish stance:

• Needham maintains Strong Buy with $240 PT (26.33% upside)
• Citigroup reiterates Strong Buy with $235 PT
• Multiple analysts have raised their price targets, with consensus ranging from $205-$250

Recommendation Given the neutral technical indicators and strong analyst support, holding current positions or waiting for a pullback to S1 ($183.11) for new entries would be prudent.

Based on the provided data and context, here is my analysis for ZS stock price prediction in 2025:

Technical Analysis

The stock is currently trading at $187.58 (as of Jan 17, 2025), showing a consolidation pattern between $180-$190 range in recent weeks. The technical indicators suggest a neutral to slightly bullish bias in the short term.

Price Target Analysis

Based on the recent price action and analyst coverage, ZS is expected to reach $219.85 by consensus, implying about 17% upside potential from current levels. The stock has strong support around $180 and resistance at $200.

Key Growth Drivers:

1. Cybersecurity Industry Tailwinds: According to recent reports, Zscaler continues to benefit from:

• Rising adoption of cloud security solutions
• Increasing cyber threats driving demand
• Strong position in Zero Trust architectures

2. Financial Performance: The company has demonstrated:

• Solid revenue growth trajectory
• Record non-GAAP operating margin of 21%
• Free cash flow margin of 46%

Price Prediction for 2025: $225-235

The target is based on:

• Strong industry fundamentals
• Improving profitability metrics
• Technical momentum indicators
• Analyst consensus targets

The S1 support level for ZS Stock is $184.8 ,The R1 resistant level for ZS Stock is $195.2.

As of the end of day on 2025-01-24, the price of ZS Stock was $193.64.

The target price for ZS Stock according to analyst rating is 226.50, with the highest price target at 270.00 and the lowest at 190.00. Analysts have a Moderate Buy rating on ZS Stock overall.

The market cap of ZS is $29.7B.

Based on the provided data and recent market analysis, here's a concise evaluation of Zscaler's valuation:

Technical Analysis The stock is currently showing bearish signals with RSI at 47.17, indicating neutral momentum but leaning towards oversold territory. MACD at -2.36 suggests a bearish trend in the near term.

Fundamental Analysis Revenue growth remains strong with consistent quarter-over-quarter increases:

• Q1 2025: $628M
• Q4 2024: $593M
• Q3 2024: $553M
• Q2 2024: $525M

However, the company continues to post net losses, though they are decreasing:

• Q1 2025: -$12.1M
• Q4 2024: -$14.9M
• Q3 2024: +$19.1M
• Q2 2024: -$28.5M

Valuation Metrics Current multiples show:

• P/S ratio: 11.94x (declining from 18.29x in Q2 2024)
• Price/Book: 19.42x (down from 36.81x in Q2 2024)

Recent Analyst Views Recent analyst ratings are predominantly positive:

• Needham: Strong Buy with $240 PT (26.33% upside)
• Citigroup: Strong Buy with $235 PT (13.88% upside)
• Wells Fargo: Hold with $190 PT (-7.93% downside)

Based on this analysis, ZS appears moderately overvalued at current levels. While the company shows strong revenue growth and improving bottom line, the premium valuation multiples and technical indicators suggest caution. The stock would be more attractive at lower levels, particularly if it pulls back to the $165-175 range where valuation metrics would be more reasonable relative to growth rates.

Zscaler, Inc. is a cloud security company, which has developed a platform incorporating core security functionalities needed to enable access to cloud resources based on identity, context and organization’s policies. The Company’s solution is a purpose-built, multi-tenant, distributed cloud platform that incorporates the security functionality needed to enable users, applications and devices to utilize authorized applications and services based on an organization’s business policies. The Company 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. The Company’s cloud-native platform, the Zscaler Zero Trust Exchange, enables customers to secure and connect users, workloads and Internet of things (IoT)/ operational technology (OT) devices across three core products, Zscaler for Users, Zscaler for Workloads and Zscaler for IoT/OT.

Based on the available data and market analysis, here's the price prediction for Zscaler (ZS) stock by 2030:

Zscaler stock is projected to reach $450-500 by 2030, driven by the company's dominant position in cloud security and zero-trust architecture. The strong growth trajectory is supported by increasing enterprise adoption of cloud security solutions and favorable cybersecurity industry trends.

The rapid expansion of AI adoption and cloud transformation will create additional security challenges, positioning Zscaler to capture a larger market share with its innovative solutions and high-profile customer base growth.

ZS has a total of 5962 employees.