Providing a diverse range of perspectives from bullish to bearish, 5 analysts have published ratings on Zscaler ( ZS ) in the last three months.

The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.

Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $226.0, with a high estimate of $250.00 and a low estimate of $190.00. Observing a 6.1% increase, the current average has risen from the previous average price target of $213.00.

Analyzing Analyst Ratings: A Detailed Breakdown

An in-depth analysis of recent analyst actions unveils how financial experts perceive Zscaler ( ZS ). The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Zscaler ( ZS ). This offers insight into analysts' perspectives on the current state of the company.

Rating: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Zscaler ( ZS ) compared to the broader market.

Price Targets: Understanding forecasts, analysts offer estimates for Zscaler's ( ZS ) future value. Examining the current and prior targets provides insight into analysts' changing expectations.

Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of Zscaler's ( ZS ) market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.

Stay up to date on Zscaler ( ZS ) analyst ratings.

Get to Know Zscaler Better

Zscaler ( ZS ) is a software-as-a-service, or SaaS, firm focusing on providing cloud-native cybersecurity solutions to primarily enterprise customers. Zscaler's ( ZS ) offerings can be broadly partitioned into Zscaler Internet Access, which provides secure access to external applications, and Zscaler Private Access, which provides secure access to internal applications. The firm is headquartered in San Jose, California, and went public in 2018.

Zscaler's Financial Performance

Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.

Revenue Growth: Zscaler ( ZS ) displayed positive results in 3 months. As of 31 October, 2024, the company achieved a solid revenue growth rate of approximately 26.42%. This indicates a notable increase in the company's top-line earnings. When compared to others in the Information Technology sector, the company excelled with a growth rate higher than the average among peers.

Net Margin: Zscaler's ( ZS ) net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of -1.92%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Zscaler's ( ZS ) ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of -0.89%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): Zscaler's ( ZS ) ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of -0.26%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: Zscaler's ( ZS ) debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.87.

The Significance of Analyst Ratings Explained

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in Benzinga Pro.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.