why Zscaler Inc. [ZS] is a Good Choice for Investors After New Price Target of $206.25

Zscaler Inc. [NASDAQ: ZS] loss -1.04% or -1.4 points to close at $133.45 with a heavy trading volume of 5190874 shares. The company report on November 30, 2022 that Zscaler Achieves FedRAMP Authorization for Entire Zero Trust Exchange Platform Portfolio of Solutions.

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Zscaler Private Access Awarded FedRAMP Moderate Authorization to Protect Government Agencies’ Most Sensitive Data Against Cyber Threats.

It opened the trading session at $126.99, the shares rose to $133.53 and dropped to $122.13, the range by which the price of stock traded the whole day. The daily chart for ZS points out that the company has recorded -10.40% loss over the past six months. However, it is still -16.85% lower than its most recent low trading price.

If we look at the average trading volume of 2.46M shares, ZS reached to a volume of 5190874 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here is what top equities market gurus are saying about Zscaler Inc. [ZS]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for ZS shares is $206.25 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on ZS stock is a recommendation set at 1.90. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Macquarie have made an estimate for Zscaler Inc. shares, keeping their opinion on the stock as Neutral, with their previous recommendation back on November 02, 2022. While these analysts kept the previous recommendation, Cantor Fitzgerald raised their target price to Neutral. The new note on the price target was released on October 21, 2022, representing the official price target for Zscaler Inc. stock. Previously, the target price had yet another raise to $220, while Robert W. Baird analysts kept a Outperform rating on ZS stock.

The Average True Range (ATR) for Zscaler Inc. is set at 7.96, with the Price to Sales ratio for ZS stock in the period of the last 12 months amounting to 17.08. The Price to Book ratio for the last quarter was 33.11, with the Price to Cash per share for the same quarter was set at 12.40. Price to Free Cash Flow for ZS in the course of the last twelve months was 73.78 with Quick ratio for the last quarter at 2.00.

Trading performance analysis for ZS stock

Zscaler Inc. [ZS] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -2.42. With this latest performance, ZS shares dropped by -13.40% in over the last four-week period, additionally sinking by -10.40% over the last 6 months – not to mention a drop of -61.54% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for ZS stock in for the last two-week period is set at 44.16, with the RSI for the last a single of trading hit 43.25, and the three-weeks RSI is set at 44.45 for Zscaler Inc. [ZS]. The present Moving Average for the last 50 days of trading for this stock 148.35, while it was recorded at 136.77 for the last single week of trading, and 174.90 for the last 200 days.

Zscaler Inc. [ZS]: A deeper dive into fundamental analysis

Operating Margin for any stock indicates how profitable investing would be, and Zscaler Inc. [ZS] shares currently have an operating margin of -30.01 and a Gross Margin at +77.70. Zscaler Inc.’s Net Margin is presently recorded at -35.77.

Return on Equity for this stock declined to -70.82, with Return on Assets sitting at -15.33.

Zscaler Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 2.00 and a Current Ratio set at 2.00.

Zscaler Inc. [ZS]: An earnings per share (EPS) analysis

The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for ZS. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Zscaler Inc. go to 52.33%.

An analysis of insider ownership at Zscaler Inc. [ZS]

There are presently around $8,863 million, or 50.10% of ZS stock, in the hands of institutional investors. The top three institutional holders of ZS stocks are: VANGUARD GROUP INC with ownership of 7,940,800, which is approximately 2.086% of the company’s market cap and around 1.00% of the total institutional ownership; BLACKROCK INC., holding 6,576,951 shares of the stock with an approximate value of $877.69 million in ZS stocks shares; and CAPITAL RESEARCH GLOBAL INVESTORS, currently with $475.82 million in ZS stock with ownership of nearly -22.831% of the company’s market capitalization.

Positions in Zscaler Inc. stocks held by institutional investors increased at the end of December and at the time of the December reporting period, where 319 institutional holders increased their position in Zscaler Inc. [NASDAQ:ZS] by around 11,426,296 shares. Additionally, 255 investors decreased positions by around 10,079,104 shares, while 94 investors held positions by with 44,908,967 shares. The mentioned changes placed institutional holdings at 66,414,367 shares, according to the latest SEC report filing. ZS stock had 74 new institutional investments in for a total of 1,444,712 shares, while 53 institutional investors sold positions of 522,309 shares during the same period.


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