Is this a Prime Time To acquire Zscaler Inc. (ZS) stock

After finishing at $107.97 in the prior trading day, Zscaler Inc. (NASDAQ: ZS) closed at $107.67, down -0.28%. In other words, the price has decreased by -$0.30 from its previous closing price. On the day, 2286936 shares were traded. ZS stock price reached its highest trading level at $108.25 during the session, while it also had its lowest trading level at $105.18.

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Our goal is to gain a better understanding of ZS by taking a closer look at its different ratios. It provided that stocks Price–to–Cash (P/C) ratio for the trailing twelve months (TTM) is standing at 8.54 whereas its Price-to-Free Cash Flow (P/FCF) for the term is 53.22. For the most recent quarter (mrq), Quick Ratio is recorded 2.00 and its Current Ratio is at 2.00. In the meantime, Its Debt-to-Equity ratio is 2.16 whereas as Long-Term Debt/Eq ratio is at 2.16.

Upgrades & Downgrades

In addition, analysts’ ratings and any changes thereto give investors an idea of the stock’s future direction. In the most recent recommendation for this company, Goldman on February 14, 2023, initiated with a Neutral rating and assigned the stock a target price of $148.

On January 24, 2023, JP Morgan started tracking the stock assigning a Neutral rating and target price of $124.

On January 18, 2023, Scotiabank started tracking the stock assigning a Sector Outperform rating and target price of $115.Scotiabank initiated its Sector Outperform rating on January 18, 2023, with a $115 target price.

Insider Transactions:

The insider trade also gives investors a glimpse into the future direction of stock prices, which can be beneficial to investors. A recent insider transaction in this stock occurred on Dec 23 when Brown Andrew William Fraser bought 5,000 shares for $108.78 per share. The transaction valued at 543,900 led to the insider holds 23,250 shares of the business.

Rajic Dali sold 7,113 shares of ZS for $811,866 on Dec 16. The Chief Operating Officer now owns 296,820 shares after completing the transaction at $114.14 per share. On Dec 16, another insider, CANESSA REMO, who serves as the Chief Financial Officer of the company, sold 6,279 shares for $114.14 each. As a result, the insider received 716,674 and left with 302,092 shares of the company.

Valuation Measures:

For the stock, the TTM Price-to-Sale (P/S) ratio is 12.06 while its Price-to-Book (P/B) ratio in mrq is 29.42.

Stock Price History:

Over the past 52 weeks, ZS has reached a high of $253.74, while it has fallen to a 52-week low of $99.64. The 50-Day Moving Average of the stock is 122.21, while the 200-Day Moving Average is calculated to be 143.45.

Shares Statistics:

The stock has traded on average 2.70M shares per day over the past 3-months and 4.59M shares per day over the last 10 days, according to various share statistics. A total of 144.51M shares are outstanding, with a floating share count of 85.57M. Insiders hold about 1.00% of the company’s shares, while institutions hold 49.60% stake in the company. Shares short for ZS as of Jan 12, 2023 were 8.76M with a Short Ratio of 6.70M, compared to 7.6M on Dec 14, 2022. Therefore, it implies a Short% of Shares Outstanding of 6.07% and a Short% of Float of 10.12%.

Earnings Estimates

Its stock is currently analyzed by 35 different market analysts. On average, analysts expect EPS of $0.29 for the current quarter, with a high estimate of $0.31 and a low estimate of $0.28, while EPS last year was $0.13. The consensus estimate for the next quarter is $0.31, with high estimates of $0.33 and low estimates of $0.28.

Analysts are recommending an EPS of between $1.49 and $1.19 for the fiscal current year, implying an average EPS of $1.24. EPS for the following year is $1.66, with 39 analysts recommending between $2.25 and $1.42.

Revenue Estimates

32 analysts predict $364.81M in revenue for the current quarter. It ranges from a high estimate of $368M to a low estimate of $345M. As of the current estimate, Zscaler Inc.’s year-ago sales were $255.56M, an estimated increase of 42.70% from the year-ago figure. For the next quarter, 32 analysts are estimating revenue of $387.47M, an increase of 35.10% less than the figure of $42.70% in the same quarter last year. There is a high estimate of $399.63M for the next quarter, whereas the lowest estimate is $368.5M.

A total of 39 analysts have provided revenue estimates for ZS’s current fiscal year. The highest revenue estimate was $1.55B, while the lowest revenue estimate was $1.47B, resulting in an average revenue estimate of $1.53B. In the same quarter a year ago, actual revenue was $1.09B, up 39.90% from the average estimate. Based on 39 analysts’ estimates, the company’s revenue will be $1.98B in the next fiscal year. The high estimate is $2.12B and the low estimate is $1.89B. The average revenue growth estimate for next year is up 29.60% from the average revenue estimate for this year.