(ZS) Zscaler - Ratings and Ratios

Zscaler, Inc. (NASDAQ:ZS) is a global leader in cloud security, offering a comprehensive suite of solutions designed to secure access to applications, data, and networks in the cloud era. The company’s core offerings include Zscaler Internet Access, which enables secure access to SaaS applications and internet destinations for users, workloads, IoT, and OT devices, and Zscaler Private Access, which provides zero-trust access to internally managed applications hosted in data centers or public and private clouds. Additionally, Zscaler Digital Experience delivers end-to-end visibility into user experience across business applications, offering a simplified digital experience score for users, applications, and locations.

The company also provides advanced cloud security solutions, including Posture Control, which ensures compliance and security for cloud applications and workloads, and Cloud Infrastructure Entitlement Management, which offers granular control over identity and privilege access in public cloud environments. Its Workload Segmentation solution secures application-to-application communications in public clouds and data centers, while Zero Trust Device Segmentation enables agentless segmentation for IT and OT environments. Zscaler also offers Zero Trust SD-WAN solutions for secure and optimized network connectivity.

Zscaler’s platform includes modules such as Zscaler Central Authority, Zscaler Enforcement Node, and Zscaler Log Servers, which collectively provide a scalable and integrated cloud security architecture. The company serves a diverse range of industries, including financial services, healthcare, manufacturing, public sector, and technology. Formerly known as SafeChannel, Inc., Zscaler was renamed in 2008 and is headquartered in San Jose, California. The company has established itself as a key player in the cybersecurity market, addressing the evolving security challenges of cloud-first and hybrid environments.

Based on the provided data, Zscaler (ZS) is expected to experience continued volatility in the short term. The stock’s average volume over the past 20 days is 2,111,300, with a last price of $201.09. The SMA 20 ($199.65) indicates recent upward momentum, while the SMA 50 ($201.11) suggests a potential consolidation phase. The SMA 200 ($191.85) reflects longer-term bullish sentiment, as the stock remains above this level. The ATR of $10.21 highlights moderate volatility, which could lead to a near-term trading range between $190 and $210.

From a fundamental perspective, Zscaler’s market cap of $31.66 billion reflects its strong position in the cloud security market. The forward P/E of 56.50 indicates high valuations, potentially pricing in future growth expectations. The P/S ratio of 13.07 suggests the stock is trading at a premium relative to its revenue, which could lead to a correction if growth slows. However, the company’s strong revenue growth and leadership in the zero-trust security space may continue to support its valuation.

Technically, the stock could face resistance at the SMA 50 level ($201.11) and support at the SMA 20 ($199.65). A breakout above $210 could signal further upside, while a breakdown below $190 may trigger a deeper correction. Investors should monitor earnings reports and macroeconomic trends, as these could significantly impact the stock’s trajectory in the next quarter.