Zscaler Shares Fall 2.9% with 17% Monthly Decline, EPS Forecast $0.89
Zscaler shares fell 2.88%, underperforming the S&P 500's 0.1% gain and registering a 16.95% drop over the past month versus the Computer and Technology sector's 4.05% loss. Analysts forecast fiscal Q3 EPS of $0.89 (+14.1%) on $798 million revenue (+23.2%).
1. Price Performance
In the latest session, Zscaler shares dropped 2.88%, underperforming major indexes as the S&P 500 gained 0.1% and the Nasdaq rose 0.14%. Over the past month, the stock declined 16.95%, significantly worse than the Computer and Technology sector's 4.05% loss and the S&P 500's 1.43% pullback.
2. Earnings Forecast
Investors are focused on Zscaler's fiscal third-quarter results due February 26, with EPS expected at $0.89, up 14.1% year-over-year, and revenue projected at $798 million, a 23.2% increase. Full-year estimates call for EPS of $3.83 (+16.8%) and revenue of $3.29 billion (+23.2%).
3. Valuation Metrics
Based on consensus estimates, Zscaler trades at a forward P/E of 46.44, a premium to the industry average of 43.49. Its PEG ratio stands at 2.54 versus the industry average of 2.44, reflecting higher expected growth rates relative to peers.