Zscaler, Inc.: Investment Report

Overview

Zscaler, Inc. is a cloud security company that provides users, workloads, IoT, and OT devices with secure access to externally managed applications, including software-as-a-service (SaaS) applications and internet destinations. With a market capitalization of $25.93 billion, Zscaler has demonstrated significant growth in its latest SEC 10-K filing. As a leader in cloud-native cybersecurity solutions, Zscaler is an attractive investment opportunity. This report provides an in-depth analysis of Zscaler's financial performance, growth prospects, and recent news updates to help investors make informed decisions.

Core Metrics

• Current price: $170.06 USD
• 52-week high: $259.61 USD
• 52-week low: $146.59 USD
• Market Cap: $25.93 billion USD
• P/E Ratio: N/A (due to negative EPS)
• Earnings per Share: -$0.39 USD
• 50-day average: $184.08 USD
• 200-day average: $197.57 USD
• Analyst Recommendations: Buy (38 analysts)

Financial Performance

Zscaler's financial performance has been impressive, with revenue growth of 30.3% year-over-year. The company's gross margins stand at 77.99%, and its operating cash flow is $779.85 million. Zscaler's total cash and free cash flow are $2.41 billion and $691.54 million, respectively. Although the company's EBITDA margins are -1.87%, its strong cash flow generation and revenue growth suggest a promising financial future.

Growth Prospects

Zscaler's growth prospects are driven by the increasing demand for cloud-native cybersecurity solutions. The company's strategic focus on cloud security, digital experience, and zero-trust architecture positions it well to capitalize on emerging trends in the industry. With a strong track record of innovation and a solid financial foundation, Zscaler is poised for continued growth and expansion.

News and Updates

Recent news articles highlight Zscaler's growth potential, with a survey finding that Gen Z entrepreneurs are interested in starting their own businesses, which could drive demand for Zscaler's solutions. Additionally, the company's latest SEC 10-K filing demonstrates significant growth, and various analysts have reiterated their buy recommendations.

Upgrades and Downgrades

On September 4, 2024, Susquehanna reiterated its Positive rating on Zscaler, while B of A Securities downgraded the stock from Buy to Neutral. Wedbush and BMO Capital reiterated their Outperform ratings, citing the company's strong growth prospects and financial performance.

Summary

In conclusion, Zscaler, Inc. presents a compelling investment opportunity, driven by its strong financial performance, growth prospects, and innovative solutions in the cloud cybersecurity space. With a buy rating from 38 analysts and a solid track record of innovation, Zscaler is well-positioned for continued growth and expansion. Investors seeking to capitalize on emerging trends in the technology sector may find Zscaler an attractive addition to their portfolios.

Disclosures

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