Zscaler, Inc. (ZS): What’s the Story?

Zscaler, Inc. (ZS) is an interesting player in the Technology space, with a focus on Security Software & Services. The stock has been active on the tape, currently trading at $38.93, down from yesterday’s close by -5.62%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

Zscaler, Inc. (ZS) currently trades with a market capitalization of $3.51 Billion. That value represents a market adjusting for revenues that have been growing by 49.14 % on a quarterly year/year basis as of the company’s last quarterly report.

You can get a sense of how sustainable that is by a levered free cash flow of -$15.24 Million over the past twelve months. Generally speaking, earnings are expected to grow in coming quarters. Analysts are forecasting earnings of -$0.1 on a per share basis this quarter. Perhaps, that suggests something about why 1.51% of the outstanding share supply is held by institutional investors.

Technical Analysis

No analysis is ever complete without a thorough survey of a stock’s technical behavior. Looking at the stock’s movement on the chart, Zscaler, Inc. recorded a 52-week high of $43.98. It is now trading 5.05% off that level. The stock is trading $28.79 its 50-day moving average by -10.14%. The stock carved out a 52-week low down at $24.76.

In recent action, Zscaler, Inc. (ZS) has made a move of +36.74% over the past month, which has come on weak relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 14.11, and it’s gotten there by action that has been less volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 5.16% with $54.66 Million sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of ZS.

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