Technical Analysis
ZS has shown significant volatility in recent trading sessions. The stock experienced a sharp decline from $249.04 on February 20 to $213.92 on February 21, followed by a recovery to $235.23 by February 23. The high trading volume of 7.8M shares on February 21 indicates strong market participation during the selloff.
Price Target and Analyst Views Recent analyst coverage from Barclays raised the price target to $250 from $220, maintaining an Overweight rating ahead of the fiscal Q2 report scheduled for March 5. The analysts expect $5M-$10M upside to Q2 billings estimates based on positive channel checks.
Growth Prospects Zscaler continues to show strong business fundamentals with its zero trust cybersecurity services. The company has demonstrated impressive revenue growth with a CAGR of 48% from fiscal 2019 to 2024. Analysts project revenue growth to continue at a CAGR of 21% from fiscal 2024 to 2027.
Price Prediction for Next Week Based on technical analysis and recent momentum:
For the next trading week (Feb 24-Mar 1):
Recommendation: HOLD
The price of ZS is predicted to go up -10.85%, based on the high correlation periods with OEC. The similarity of these two price pattern on the periods is 97.08%.
ZS
OEC
Year
ZS Price Forecast($)
Potential Return(%)
2025
218.000
14.750
2026
315.000
55.490
2027
300.000
48.080
2028
315.000
55.490
2029
350.000
72.760
2030
450.000
122.120
Zscaler has strong secular tailwinds behind its back as the convergence of networking and the security market is in its early innings.
Zscaler has market leadership and high enterprise penetration through its offerings related to secure web gateways and zero-trust network access.
Consolidation of security vendors should benefit Zscaler, which has a wide array of solutions across an enterprise's network security stack.
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