Zscaler Stock Buy Hold or Sell Recommendation

ZS Stock  USD 192.63  0.85  0.44%   
Allowing for the 90-day total investment horizon and your above-average risk tolerance, our recommendation regarding Zscaler is 'Cautious Hold'. Macroaxis provides Zscaler buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding Zscaler positions. The advice algorithm takes into account all of Zscaler's available fundamental, technical, and predictive indicators you will find on this site. Key drivers impacting Zscaler's buy or sell advice are summarized below:
Real Value
184.1
Target Price
189.06
Hype Value
192.95
Market Value
192.63
Naive Value
205.16
A buy or sell recommendation provided by Macroaxis is an automated directive regarding whether to purchase or sell Zscaler given historical horizon and risk tolerance towards Zscaler. When Macroaxis issues a 'buy' or 'sell' recommendation for Zscaler, the advice is generated through an automated system that utilizes algorithms and statistical models.
  
Check out Zscaler Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
For more information on how to buy Zscaler Stock please use our How to Invest in Zscaler guide.
In addition, we conduct extensive research on individual companies such as Zscaler and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards Zscaler. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in state.

Execute Zscaler Buy or Sell Advice

The Zscaler recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Zscaler. Macroaxis does not own or have any residual interests in Zscaler or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Zscaler's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell ZscalerBuy Zscaler
Cautious Hold

Market Performance

Very WeakDetails

Volatility

Very steadyDetails

Hype Condition

Low keyDetails

Current Valuation

OvervaluedDetails

Odds Of Distress

LowDetails

Economic Sensitivity

Responds to the marketDetails

Investor Sentiment

AlarmedDetails

Analyst Consensus

Strong BuyDetails

Financial Strenth (F Score)

HealthyDetails

Financial Leverage

Not RatedDetails

Reporting Quality (M-Score)

Unlikely ManipulatorDetails
For the selected time horizon Zscaler has a Mean Deviation of 1.99, Standard Deviation of 3.03 and Variance of 9.17
Macroaxis provides trade recommendation on Zscaler to complement and cross-verify current analyst consensus on Zscaler. Our trade advice engine determines the company's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon. To make sure Zscaler is not overpriced, please check out all Zscaler fundamentals, including its gross profit, debt to equity, and the relationship between the price to book and cash and equivalents . Given that Zscaler has a number of shares shorted of 4.56 M, we strongly advise you to confirm Zscaler market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your prevalent risk tolerance and investing horizon.

Zscaler Trading Alerts and Improvement Suggestions

Zscaler generated a negative expected return over the last 90 days
Zscaler has high historical volatility and very poor performance
The company generated the yearly revenue of 1.62 B. Annual Net Loss to common stockholders was (202.34 M) with gross profit of 1.26 B.
About 39.0% of the company outstanding shares are owned by insiders
Latest headline from gurufocus.com: Zscaler Is Attractively Valued Amid Growing Digital Reliance

Zscaler Returns Distribution Density

The distribution of Zscaler's historical returns is an attempt to chart the uncertainty of Zscaler's future price movements. The chart of the probability distribution of Zscaler daily returns describes the distribution of returns around its average expected value. We use Zscaler price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Zscaler returns is essential to provide solid investment advice for Zscaler.
Mean Return
-0.17
Value At Risk
-4.36
Potential Upside
4.13
Standard Deviation
3.03
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Zscaler historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Zscaler Stock Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Zscaler is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Zscaler backward and forwards among themselves. Zscaler's institutional investor refers to the entity that pools money to purchase Zscaler's securities or originates loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Shares
Champlain Investment Partners, Llc2023-12-31
1.4 M
Ing Investment Management Llc2023-12-31
1.4 M
1832 Asset Management L.p2023-12-31
982.5 K
Two Sigma Advisers, Llc2023-12-31
959.4 K
Pictet Asset Manangement Sa2023-12-31
956.7 K
Marshall Wace Asset Management Ltd2023-12-31
944.7 K
D. E. Shaw & Co Lp2023-09-30
937.8 K
Fmr Inc2023-12-31
923.7 K
Deutsche Bank Ag2023-12-31
919.2 K
Vanguard Group Inc2023-12-31
8.8 M
Blackrock Inc2023-12-31
6.6 M
Note, although Zscaler's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Zscaler Cash Flow Accounts

201920202021202220232024 (projected)
Change To Inventory(8.0M)(18.9M)(18.9M)(45.3M)(40.8M)(38.7M)
Investments(946.8M)(10.8M)374.1M(259.3M)(233.4M)(221.7M)
Change In Cash63.4M134.0M737.3M249.0M286.3M153.9M
Free Cash Flow27.5M143.7M231.3M333.6M383.7M402.8M
Depreciation21.1M36.5M49.5M66.8M76.8M80.7M
Other Non Cash Items44.5M125.9M156.3M124.1M142.7M149.9M
Capital Expenditures51.8M58.3M90.6M128.7M148.0M155.4M
Net Income(115.1M)(262.0M)(390.3M)(202.3M)(182.1M)(191.2M)
End Period Cash Flow141.9M275.9M1.0B1.3B1.5B1.5B
Change To Netincome121.3M289.6M441.6M466.7M536.7M563.5M
Change Receivables(31.7M)(54.2M)(111.6M)(143.3M)(129.0M)(122.6M)

Zscaler Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Zscaler or Software sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Zscaler's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Zscaler stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over NYSE Composite
-0.35
β
Beta against NYSE Composite1.43
σ
Overall volatility
3.10
Ir
Information ratio -0.1

Zscaler Volatility Alert

Zscaler exhibits very low volatility with skewness of -1.74 and kurtosis of 6.87. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Zscaler's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Zscaler's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.

Zscaler Implied Volatility

Zscaler's implied volatility exposes the market's sentiment of Zscaler stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Zscaler's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Zscaler stock will not fluctuate a lot when Zscaler's options are near their expiration.

Zscaler Fundamentals Vs Peers

Comparing Zscaler's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Zscaler's direct or indirect competition across all of the common fundamentals between Zscaler and the related equities. This way, we can detect undervalued stocks with similar characteristics as Zscaler or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Zscaler's fundamental indicators could also be used in its relative valuation, which is a method of valuing Zscaler by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Zscaler to competition
FundamentalsZscalerPeer Average
Return On Equity-0.19-0.31
Return On Asset-0.0332-0.14
Profit Margin(0.07) %(1.27) %
Operating Margin(0.09) %(5.51) %
Current Valuation27.76 B16.62 B
Shares Outstanding149.86 M571.82 M
Shares Owned By Insiders38.56 %10.09 %
Shares Owned By Institutions49.85 %39.21 %
Number Of Shares Shorted4.56 M4.71 M
Price To Book30.23 X9.51 X
Price To Sales15.30 X11.42 X
Revenue1.62 B9.43 B
Gross Profit1.26 B27.38 B
EBITDA(101.61 M)3.9 B
Net Income(202.34 M)570.98 M
Cash And Equivalents1.73 B2.7 B
Cash Per Share12.10 X5.01 X
Total Debt1.21 B5.32 B
Debt To Equity1.82 %48.70 %
Current Ratio1.99 X2.16 X
Book Value Per Share6.40 X1.93 K
Cash Flow From Operations462.34 M971.22 M
Short Ratio1.29 X4.00 X
Earnings Per Share(0.95) X3.12 X
Price To Earnings To Growth1.39 X4.89 X
Target Price264.04
Number Of Employees5.96 K18.84 K
Beta0.84-0.15
Market Capitalization28.99 B19.03 B
Total Asset3.61 B29.47 B
Retained Earnings(1.09 B)9.33 B
Working Capital1.35 B1.48 B
Z Score14.758.72
Note: Disposition of 4049 shares by Rich Michael J. of Zscaler at 193.1463 subject to Rule 16b-3 [view details]

Zscaler Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Zscaler . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.

About Zscaler Buy or Sell Advice

When is the right time to buy or sell Zscaler? Buying financial instruments such as Zscaler Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
 2021 2022 2023 2024 (projected)
Other Current Liabilities158.4M201.8M232.0M243.6M
Total Assets2.8B3.6B4.1B4.4B

Use Investing Ideas to Build Portfolios

In addition to having Zscaler in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Cash Cows Thematic Idea Now

Cash Cows
Cash Cows Theme
Entities with stable and reliable earnings or profits, which allows them to pay consistent dividends to their shareholders. The Cash Cows theme has 25 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Cash Cows Theme or any other thematic opportunities.
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When determining whether Zscaler is a strong investment it is important to analyze Zscaler's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Zscaler's future performance. For an informed investment choice regarding Zscaler Stock, refer to the following important reports:
Check out Zscaler Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
For more information on how to buy Zscaler Stock please use our How to Invest in Zscaler guide.
You can also try the ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.

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When running Zscaler's price analysis, check to measure Zscaler's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Zscaler is operating at the current time. Most of Zscaler's value examination focuses on studying past and present price action to predict the probability of Zscaler's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Zscaler's price. Additionally, you may evaluate how the addition of Zscaler to your portfolios can decrease your overall portfolio volatility.
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Is Zscaler's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Zscaler. If investors know Zscaler will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Zscaler listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share
(0.95)
Revenue Per Share
12.887
Quarterly Revenue Growth
0.354
Return On Assets
(0.03)
Return On Equity
(0.19)
The market value of Zscaler is measured differently than its book value, which is the value of Zscaler that is recorded on the company's balance sheet. Investors also form their own opinion of Zscaler's value that differs from its market value or its book value, called intrinsic value, which is Zscaler's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Zscaler's market value can be influenced by many factors that don't directly affect Zscaler's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Zscaler's value and its price as these two are different measures arrived at by different means. Investors typically determine if Zscaler is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Zscaler's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.