Stock Price & Analysis

Based on the provided data, I'll analyze whether to buy or sell Zscaler (ZS) stock.

Technical Analysis The stock has shown mixed performance, with a 9% gain year-to-date but remains down 17% over the past year. Recent price action suggests consolidation ahead of upcoming earnings.

Fundamental Catalysts

• Earnings Report: ZS reports FQ2 2025 results on March 5th after market close
• Expected Results:
  • EPS: $0.69 (-9% YoY)
  • Revenue: $635.33M (+21% YoY)
• Strong Track Record: Company has consistently beaten both EPS and revenue expectations in past 8 quarters

Analyst Sentiment Wall Street maintains a Strong Buy consensus with:

• 20 Buys
• 7 Holds
• Average price target: $230.64 (17.5% upside potential)

Key Strengths

• Strong demand for Zero Trust Exchange platform and AI-enhanced solutions
• Enhanced go-to-market plans and continued innovation
• Recent checks indicate potential upside to Q2 expectations

Risk Factors

• Revenue growth deceleration amid intense competition
• High valuation with forward P/S ratio of 9.6x
• Broader market volatility affecting tech stocks

Conclusion SELL. Despite strong analyst support and consistent earnings beats, the combination of:

1. Decelerating growth
2. High valuation
3. Pre-earnings uncertainty
4. Recent technical weakness suggests taking profits ahead of earnings would be prudent.

Based on the provided data and context, here's the analysis for Zscaler (ZS) stock price prediction for 2025:

Technical Analysis

Current Market Position

• Current trading price is around $204.70
• Stock has risen about 9% year-to-date but declined 17% over the past year
• Showing signs of bullish momentum with strong institutional support

Growth Projections

• Revenue expected to grow 20.78% year-over-year to $634.07 million in Q2 FY2025
• Company maintains strong position in zero-trust cybersecurity space
• Analysts project continued growth driven by:
  • Enhanced go-to-market plans
  • Continued innovation in AI-enhanced solutions
  • Strong demand for Zero Trust Exchange platform

Price Target 2025 Based on analyst consensus and technical analysis, ZS stock price prediction for 2025:

• Base case: $230-235 (supported by Stifel's price target)
• Bull case: $250-260 (driven by potential AI catalyst and market expansion)
• Bear case: $190-200 (considering competitive pressures and growth deceleration)

Most likely scenario: Base case of $230-235, supported by:

• Strong market position in zero-trust security
• Continued AI innovation driving growth
• Solid revenue growth projections
• Positive analyst sentiment with majority maintaining Buy ratings

The S1 support level for ZS Stock is $186.36 ,The R1 resistant level for ZS Stock is $207.28.

As of the end of day on 2025-03-06, the price of ZS Stock was $202.78.

The target price for ZS Stock according to analyst rating is 230.43, with the highest price target at 270.00 and the lowest at 190.00. Analysts have a Strong Buy rating on ZS Stock overall.

The market cap of ZS is $31.0B.

Based on the provided data and recent market analysis, Zscaler (ZS) appears to be overvalued at current levels. The company's forward P/E ratio is excessively high even when accounting for its growth rate. Despite showing solid demand for its Zero Trust Exchange platform and AI-enhanced solutions, revenue growth is expected to decelerate amid intense competition. The Q2 FY25 outlook indicates further slowdown in growth trajectory.

While Wall Street maintains a Strong Buy consensus with a price target of $230.64 (implying 17.5% upside), this valuation appears stretched given:

1. Decelerating revenue growth rate expected in Q2 FY25
2. Intense competitive pressures in the cybersecurity space
3. Compared to peers like CrowdStrike and CyberArk, Zscaler faces more challenges and has a more cautious outlook

The upcoming Q2 FY25 earnings report on March 5 is expected to show:

• EPS of $0.69 (-9% YoY)
• Revenue of $634.4M (+21% YoY)

While some analysts like Stifel remain optimistic based on stronger mid-quarter checks, the current valuation leaves little room for error. The risk-reward ratio appears unfavorable at these levels.

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 provided references and data, here's an analysis of Zscaler (ZS) stock price prediction for 2030:

Technical Analysis & Current Position

2030 Price Prediction

Zscaler (ZS) stock is projected to reach $450-500 by 2030, driven by the company's dominant position in zero-trust security and cloud-native cybersecurity solutions. The strong growth trajectory is supported by consistent revenue expansion, with current projections showing 21.58% year-over-year growth and a robust billings pipeline.

The cybersecurity market's rapid evolution and increasing cloud adoption, coupled with Zscaler's technological leadership in AI-integrated security solutions, positions the company for sustained long-term growth. Recent analyst coverage maintains bullish ratings with near-term price targets ranging from $205-235, indicating strong fundamental momentum.

ZS has a total of 5962 employees.