I recently joined The REIT Forum and if you are looking for more investment ideas like this one, get them exclusively at The REIT Forum with access to our subscriber only portfolios.I last wrote about Zscaler, Inc. (NASDAQ: ZS ) in January, where I reiterated my "buy" rating with a price target of $221. My bullish thesis was predicated on my belief that the company continued to see ongoingAmrita runs a boutique family office fund in beautiful Vancouver, where she leads the investment strategy for the family ...

Group 1 - The article highlights that tariffs and recession fears have negatively impacted most growth stocks this year, with Zscaler being a notable exception in the cybersecurity sector [1] - Zscaler focuses on protecting customer data, positioning itself as a resilient player amidst challenging market conditions [1] Group 2 - The author, Gary Alexander, has extensive experience in technology companies and has been a contributor to Seeking Alpha since 2017, indicating a strong background in industry analysis [1] - Alexander's insights are informed by his experience in both Wall Street and Silicon Valley, as well as his advisory role to seed-round startups [1]

I view Zscaler (NASDAQ: ZS ) to be largely insulated from the volatility roiling broader markets. The company has seen little roadblocks to its growth trajectory and continues to make progress on profitability. While I warn that forward revenue growthJulian is the leader of the investing group Best Of Breed Growth Stocks where he only shares positions in stocks which have a large probability of delivering large alpha relative to the S&P 500. He also combines growth-oriented principles with strict valuation ...

Annual ThreatLabz Report Reveals 36x More AI/ML Transactions in World’s Largest Security Cloud, Stressing the Need for Zero Trust Everywhere to Enable Secure GenAI Adoption and Stop AI-Powered Threats ThreatLabz 2025 AI Security Report Top AI Applications ChatGPT is the most popular AI/ML application, accounting for nearly half of all AI/ML transactions (45.2%) and is also the most-blocked AI application, followed by Grammarly, and Microsoft Copilot as the second and third most-blocked applications, resp ...

Company Overview - Zscaler has seen its shares increase nearly 10% year-to-date, driven by strong financial performance in its fiscal 2025 second quarter, which ended January 31 [2] - The company specializes in cybersecurity software and is experiencing robust demand as businesses face increasing digital threats [2] Financial Performance - Zscaler reported revenue of $647.9 million for the fiscal 2025 second quarter, marking a 23% increase year-over-year and exceeding guidance of $634 million [9] - The company has raised its full-year revenue forecast for fiscal 2025 by $14 million to $2.647 billion [9] - Operating expenses grew by only 19% in the first half of fiscal 2025, slower than the nearly 25% revenue growth, indicating improved cost management [10] - Zscaler's net loss for the first half of fiscal 2025 was $19.7 million, a 68% reduction from the previous year's loss of $61.9 million [11] - On a non-GAAP basis, Zscaler achieved profitability of $251.8 million, a 35.1% increase compared to the first half of fiscal 2024 [12] Market Position and Strategy - Zscaler's stock remains 45% below its all-time high from 2021, suggesting potential for investment [3] - The company has shifted from a growth-at-all-costs strategy to a more balanced approach, focusing on sustainable growth and profitability [13] - Zscaler aims to create a "Zero Trust Everywhere" environment, with 130 customers currently adopting this approach and plans to triple that number in 18 months [8] Analyst Sentiment - The majority of analysts covering Zscaler stock have assigned it the highest buy rating, with no recommendations to sell [3][14] - The average price target for Zscaler's stock is $236.50, indicating an 18% potential upside, while the highest target suggests a 35% upside [15] Industry Context - The total addressable market for Zscaler is valued at $96 billion, indicating significant growth potential [16] - Cybercrime is projected to cause $10.5 trillion in damages globally in 2025, suggesting increasing demand for advanced cybersecurity solutions [17] - Zscaler's stock, previously overvalued at around $370, may have the potential to reclaim that level if it continues its current growth trajectory [18]

Core Insights - Zscaler has shown a 20% gain over the past six months, outperforming the S&P 500 index, which remained flat during the same period [1] - The company released its fiscal 2025 second-quarter results, which exceeded expectations and led to a positive outlook for the future [2][3] Financial Performance - Fiscal Q2 revenue increased by 23% year over year to $648 million, while earnings per share grew by 24% to $0.78, surpassing both guidance and consensus expectations [3] - Zscaler raised its fiscal 2025 revenue growth expectation to 22% and increased its operating profit estimate to $567 million from $554 million [4] Market Opportunity - The serviceable addressable market for Zscaler's cloud-based cybersecurity solutions is estimated at $96 billion, indicating significant growth potential [5] - The global data protection market is projected to exceed $500 billion in annual revenue by 2032, suggesting Zscaler can accelerate its growth rate [7] Customer Demand and Growth Metrics - Annual recurring revenue (ARR) from emerging products grew at twice the rate of core products, driven by demand for AI analytics and data protection solutions [6] - Remaining performance obligations (RPO) increased by 28% to $4.6 billion, indicating a higher volume of contracts being secured [8] Profitability and Valuation - Increased spending by existing customers and a larger customer base positively impacted Zscaler's operating profit margin, which rose by 2 percentage points year over year [9] - Zscaler trades at 12 times sales, higher than the U.S. technology sector index's multiple of 7.3, but its growth profile justifies this valuation [10] Future Projections - If Zscaler's revenue reaches $3.84 billion in a couple of fiscal years, its market cap could increase to $46 billion, representing a 43% rise from current levels [11]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended January 31, 2025 OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _to_ Commission File Number: 001-38413 ZSCALER, INC. (Exact Name of Registrant as Specified in its Charter) 26-1173892 (I.R.S. Employer Identification Number) ...

Zscaler NASDAQ: ZS can set a fresh multiyear high in 2025, and the move could come before mid-year and happen quickly. It could happen soon because the company’s results and guidance are better than expected, and the analysts are re-engaging with the market. Zscaler Stock Forecast Today12-Month Stock Price Forecast:$232.8415.18% Upside Moderate BuyBased on 33 Analyst RatingsHigh Forecast$270.00Average Forecast$232.84Low Forecast$170.00Zscaler Stock Forecast DetailsAnalysts' sentiment didn’t sour in 2024, bu ...

Now you can get access to the latest and highest-quality analysis of recent Wall Street buying and selling ideas with just one subscription to Beyond the Wall Investing ! There is a free trial and a special discount of 10% for you. Join us today!My first and only article on Zscaler, Inc. (NASDAQ: ZS ) stock came out in July 2023 with a "Hold" rating. At the time I was arguing that ZS investors were overpaying for the stock compared even toDaniel Sereda is chief investment analyst at a family office whose in ...

Company Overview - Zscaler, Inc. is experiencing a strong demand for cybersecurity solutions, with a shift towards software-focused network security [2]. Industry Insights - Cybersecurity is becoming a priority for various executives beyond just the Chief Information Security Officer (CISO), including CIOs, CFOs, CEOs, and Board members, driven by increasing ransomware attacks [2]. - There is a growing recognition that traditional approaches, such as adding more firewalls and VPNs after a breach, are ineffective; instead, a shift towards a more efficient architecture is necessary [2]. - Customers are seeking solutions that provide zero trust architecture while also reducing costs, indicating a dual focus on security and financial efficiency [2][3].