Zscaler, Inc. (NASDAQ:ZS) Receives Average Recommendation of “Moderate Buy” from Brokerages

Shares of Zscaler, Inc. (NASDAQ:ZS) have earned a consensus rating of “Moderate Buy” from the forty-two ratings firms that are currently covering the company, MarketBeat reports. Two research analysts have rated the stock with a sell rating, six have issued a hold rating and thirty-four have given a buy rating to the company. The average twelve-month price target among brokers that have updated their coverage on the stock in the last year is $216.5250.

A number of brokerages recently issued reports on ZS. Wolfe Research reiterated an “outperform” rating and issued a $150.00 price target on shares of Zscaler in a research note on Thursday, June 11th. Evercore set a $155.00 target price on shares of Zscaler and gave the stock an “in-line” rating in a report on Wednesday, May 27th. B. Riley Financial dropped their target price on shares of Zscaler from $225.00 to $215.00 and set a “buy” rating on the stock in a research note on Wednesday, May 27th. Stephens set a $215.00 price target on shares of Zscaler in a research report on Friday, September 4th. Finally, Stifel Nicolaus boosted their price objective on shares of Zscaler from $175.00 to $200.00 and gave the stock a “buy” rating in a report on Wednesday, August 19th.

Zscaler Stock Down 1.2%

Shares of NASDAQ:ZS opened at $191.58 on Thursday. The company has a current ratio of 1.70, a quick ratio of 1.70 and a debt-to-equity ratio of 0.65. The stock has a fifty day simple moving average of $166.06 and a two-hundred day simple moving average of $151.14. Zscaler has a 12-month low of $114.63 and a 12-month high of $336.99. The stock has a market capitalization of $31.24 billion, a price-to-earnings ratio of -491.23, a PEG ratio of 23.33 and a beta of 0.95.

Zscaler (NASDAQ:ZS) last released its earnings results on Thursday, September 3rd. The company reported $1.19 EPS for the quarter, topping analysts’ consensus estimates of $1.09 by $0.10. Zscaler had a positive return on equity of 1.23% and a negative net margin of 1.88%.The firm had revenue of $898.19 million for the quarter, compared to analysts’ expectations of $876.96 million. During the same period in the prior year, the firm posted $0.89 earnings per share. The company’s quarterly revenue was up 24.9% on a year-over-year basis. Zscaler has set its FY 2027 guidance at 4.860-4.900 EPS and its Q1 2027 guidance at 1.150-1.160 EPS. On average, research analysts anticipate that Zscaler will post 0.61 earnings per share for the current fiscal year.

Zscaler News Roundup

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: AI-related demand remains a major catalyst. Management called AI “the largest tailwind” in the company’s history, with growth increasingly coming from data security and Security for AI rather than only seat-based subscriptions. J.P. Morgan also identified Zscaler as a cybersecurity beneficiary of rising AI adoption. Zscaler’s AI Story Is Accelerating, Its Growth Guide Isn’t
• Positive Sentiment: Zscaler’s fiscal 2026 results showed continued execution, including approximately 25% annual recurring revenue growth and better-than-expected quarterly earnings and revenue. The company’s platform expansion could support longer-term growth if new AI and data-security products gain traction. Zscaler Growth Engine
• Positive Sentiment: Market momentum remains favorable: Zscaler was highlighted as a strong momentum stock, and traders purchased a large volume of call options, indicating increased bullish positioning and expectations for additional gains. Zscaler Momentum Stock
• Neutral Sentiment: A broader cybersecurity rally, partly linked to positive comments about AI safety, recently lifted Zscaler and peer companies. Sector-wide enthusiasm may continue to help ZS, although it also increases the risk of profit-taking if sentiment cools. Cybersecurity Rally Takes Zscaler Up
• Negative Sentiment: The main concern is that fiscal 2027 guidance implies growth slowing to roughly the mid-teens, compared with 25% ARR growth in fiscal 2026. At roughly 9.3 times sales after a substantial three-month rally, investors may be demanding faster growth than the guidance currently supports. What Growth Are You Paying For in Zscaler Stock?

Insiders Place Their Bets

In other Zscaler news, CFO Kevin Rubin sold 503 shares of Zscaler stock in a transaction on Tuesday, August 25th. The stock was sold at an average price of $173.38, for a total value of $87,210.14. Following the completion of the sale, the chief financial officer owned 40,895 shares of the company’s stock, valued at approximately $7,090,375.10. This trade represents a 1.22% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Adam Geller sold 2,817 shares of the business’s stock in a transaction on Monday, June 22nd. The stock was sold at an average price of $122.60, for a total value of $345,364.20. Following the completion of the transaction, the insider owned 42,314 shares of the company’s stock, valued at $5,187,696.40. This represents a 6.24% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 6,945 shares of company stock valued at $897,536. Corporate insiders own 17.20% of the company’s stock.

Hedge Funds Weigh In On Zscaler

Hedge funds and other institutional investors have recently bought and sold shares of the stock. University of Texas Texas AM Investment Management Co. bought a new stake in shares of Zscaler in the fourth quarter worth approximately $30,000. POM Investment Strategies LLC lifted its position in Zscaler by 92.9% during the second quarter. POM Investment Strategies LLC now owns 218 shares of the company’s stock valued at $31,000 after purchasing an additional 105 shares during the period. Western Wealth Management LLC purchased a new stake in Zscaler in the first quarter worth approximately $33,000. Reflection Asset Management purchased a new stake in Zscaler in the fourth quarter worth approximately $40,000. Finally, Continuum Advisory LLC purchased a new stake in Zscaler in the second quarter worth approximately $43,000. Institutional investors own 46.45% of the company’s stock.

Zscaler Company Profile

Zscaler, Inc is a cloud-native cybersecurity company that provides security services designed to help organizations connect users, devices, applications and workloads securely over the internet. Its platform is built around a zero-trust security model, which verifies access based on identity, context and policy rather than relying primarily on a traditional corporate network perimeter.

The company’s offerings include Zscaler Internet Access, which secures access to internet and software-as-a-service applications, and Zscaler Private Access, which provides secure, policy-based access to private applications without requiring conventional virtual private networks.