Zscaler, Inc. (NASDAQ:ZS) has quickly risen to prominence as a leading cloud-based internet security platform, providing organizations with reliable and comprehensive services to protect against external threats such as malware, phishing, and data breaches. The company’s stock has recently garnered a “Moderate Buy” consensus recommendation from thirty-eight top research firms in the industry, according to Bloomberg Ratings.
Over the past year, Zscaler’s impressive performance has caught the attention of investors and analysts. During the latest quarter, the company generated $387.60 million in revenue, surpassing expectations of $363.80 million. Additionally, Zscaler achieved an earnings per share (EPS) of ($0.35), exceeding analyst predictions of ($0.43) by $0.08.
Zscaler offers a range of products, including Zero Trust Exchange, Zscaler Client Connector, Zscaler Internet Access, Zscaler Private Access, Zscaler B2B, Zscaler Cloud Protection, and Zscaler Digital Experience. By leveraging these solutions, the platform aims to deliver comprehensive protection to businesses while reducing complexity and cost.
Despite the impressive financial results from the previous year, some analysts remain cautious when evaluating the stock trends for the current fiscal year. On average, industry experts anticipate an EPS of -1.19 for 2022, which may lead potential investors to have reservations about investing in this emerging platform.
However, it is worth noting that the average price target among brokerages stands at $164.56 after recent coverage updates, indicating that many analysts still hold a positive outlook on the future prospects of this cybersecurity firm.
Zscaler’s cloud-based approach to cybersecurity has been a key factor in its success. By providing organizations with a scalable and flexible platform, Zscaler has enabled businesses to strengthen their security posture while adapting to evolving threats and technological advancements. The company’s focus on innovation and comprehensive protection has positioned it as a trusted partner for organizations across various industries.
As the cybersecurity landscape continues to evolve and threats become more sophisticated, the need for robust and reliable security solutions has become paramount. Zscaler has positioned itself at the forefront of this industry shift, offering advanced features and capabilities to ensure that organizations can defend against cyber threats effectively.
The “Moderate Buy” consensus recommendation from numerous research firms underscores the confidence placed in Zscaler’s ability to deliver value to its customers and generate sustainable growth. However, potential investors should consider both the positive performance to date and the cautious outlook for the current fiscal year when evaluating their investment decisions.
Zscaler’s rise as a powerhouse in cloud-based cybersecurity reflects the increasing recognition of its capabilities and the market demand for comprehensive and scalable security solutions. With an expanding suite of products and a strong focus on innovation, the company is well-positioned to capitalize on the growing need for effective cybersecurity measures in today’s digital landscape.