ZS - Email Alert - 11/17/20 - 8:00 AM EST
We are placing an alert on Zscaler, Inc. (ZS). The stock is trading at $131 a share. Today, Zscaler announced that management is scheduled to present at 3 upcoming investor conferences in December... from December 3rd to the 10th. Typically this will help boost share price. The Company reports 1st Quarter earnings on December 2nd and we are expecting a good number due to many companies needing security for externally managed applications from employees working from home. Zscaler is a leader in this field worldwide. On their last earnings report the Company reported Revenue growth of 46.2% year/year. They missed on beating earnings estimates, however we believe this was due to the large surge of expenses needed to meet demand. The CEO stated, "Businesses are digitally transforming at a pace never seen before, and this is fueling adoption of the Zscaler™ Zero Trust Exchange platform..."
The stock has pulled back from yesterday and may offer an opportunity.
SHORT-TERM PRICE TARGET
December Conferences and upcoming earnings, strong growth from employees working from home
OUR SHORT-TERM TARGET PROBABILITY RATING 1-10
09/09/20 - Zscaler (ZS) reported a Quarter July 2020 loss of $0.12 per share on revenue of $125.9 million. The consensus earnings estimate was $0.03 per share on revenue of $118.4 million. The Earnings Whisper number was $0.05 per share. Revenue grew 46.2% on a year-over-year basis.
The company said it expects first quarter non-GAAP earnings of $0.05 to $0.06 per share on revenue of $131.0 million to $133.0 million and fiscal 2021 earnings of $0.28 to $0.30 per share on revenue of $580.0 million to $590.0 million. The current consensus estimate is earnings of $0.03 per share on revenue of $127.0 million for the quarter ending October 31, 2020 and earnings of $0.29 per share on revenue of $555.8 million for the year ending July 31, 2021.
"Businesses are digitally transforming at a pace never seen before, and this is fueling adoption of the Zscaler™ Zero Trust Exchange platform and our strong fourth quarter and fiscal year results," said Jay Chaudhry, Chairman and CEO of Zscaler. "In the new work-from-anywhere economy, where legacy network and security is an inhibitor, organizations are turning to our Zero Trust Exchange for the right architecture to enable success and create competitive advantage in this cloud and mobile world. I'm proud of our go-to-market execution and of the new innovations we are rapidly delivering on our platform to help our customers succeed."
The stock has a 52 week high of $163.80 and a low of $35. Support is around $106.00 a share and should be a good location for a protective sell stop order or self-imposed sell alert.
Zscaler, Inc. operates as a cloud security company worldwide. The company provides Zscaler Internet Access solution that provides users, servers, operational technology, internet of things, and device secure access to externally managed applications, including software-as-a-service (SaaS) applications and internet destinations; and Zscaler Private Access solution, which is designed to provide access to internally managed applications, either hosted internally in data centers, and private or public clouds. It also offers Zscaler Digital Experience that measures end-to-end user experience across key business applications, providing an easy to understand digital experience score for each user, application, and location within an enterprise. In addition, the company provides workload segmentation solutions comprising Zscaler Cloud Security Posture Management that identifies and remediates application misconfigurations in SaaS, infrastructure as a service, and platform as a service to reduce risk and ensure compliance with industry and organizational benchmarks; and Zscaler Cloud Workload Segmentation, which is designed to secure application-to-application communications inside public clouds and data centers to stop lateral threat movement, as well as to prevent application compromise and reduce the risk of data breaches. Its platform includes Zscaler Central Authority, Zscaler Enforcement Node, and Zscaler Nanolog Server modules. Zscaler, Inc. serves customers in various industries, such as airlines and transportation, conglomerates, consumer goods and retail, financial services, healthcare, manufacturing, media and communications, public sector and education, technology, and telecommunications services. The company was formerly known as SafeChannel, Inc., and changed its name to Zscaler, Inc. in August 2008. Zscaler, Inc. was founded in 2007 and is headquartered in San Jose, California.