ZS Should I Buy
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Zscaler Inc (ZS) is not a strong buy at the moment for a beginner investor with a long-term strategy. While the company operates in a high-growth market and has positive analyst sentiment, recent insider selling, bearish technical indicators, and lack of strong proprietary trading signals suggest caution. The stock may be better suited for monitoring rather than immediate investment.
The technical indicators show a bearish trend. The MACD histogram is negative at -1.38, RSI is neutral at 34.512, and moving averages are bearish (SMA_200 > SMA_20 > SMA_5). The stock is trading below key pivot levels (Pivot: 128.007, Current Price: 124.85), indicating potential downside risk.
Zscaler operates in a high-growth, nascent market with increasing relevance in the AI era.
Analysts have recently upgraded the stock, with Guggenheim setting a $214 price target and emphasizing its leadership in Zero Trust security.
Insider selling has increased significantly (1511.18% over the last month).
Recent stock decline of 31.52% on May 27, 2026, due to underwhelming Q4 guidance and FY27 growth outlook.
Legal investigation into potential misrepresentation of growth outlook.
No financial data available for analysis. However, Q3 results showed a 25% revenue increase and strong large-deal momentum, though the conservative FY27 outlook has raised concerns.
Analysts are generally positive on Zscaler, with multiple Buy ratings and price targets ranging from $175 to $225. However, some firms have lowered their targets due to concerns about FY27 growth deceleration and Q4 guidance.
