In the latest market close, Zscaler (ZS) reached $214.67, with a -1.01% movement compared to the previous day. This move lagged the S&P 500's daily gain of 0.24%. At the same time, the Dow added 0.16%, and the tech-heavy Nasdaq gained 0.08%.

The cloud-based information security provider's shares have seen an increase of 13.06% over the last month, surpassing the Computer and Technology sector's gain of 1.76% and the S&P 500's gain of 2.37%.

Market participants will be closely following the financial results of Zscaler in its upcoming release. The company plans to announce its earnings on March 5, 2025. In that report, analysts expect Zscaler to post earnings of $0.69 per share. This would mark a year-over-year decline of 9.21%. Our most recent consensus estimate is calling for quarterly revenue of $634.07 million, up 20.78% from the year-ago period.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.99 per share and a revenue of $2.64 billion, signifying shifts of -6.27% and +21.58%, respectively, from the last year.

Investors should also note any recent changes to analyst estimates for Zscaler. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 34.4% higher within the past month. Zscaler is holding a Zacks Rank of #2 (Buy) right now.

In the context of valuation, Zscaler is at present trading with a Forward P/E ratio of 72.56. This denotes a premium relative to the industry's average Forward P/E of 67.06.

Also, we should mention that ZS has a PEG ratio of 5.38. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The average PEG ratio for the Security industry stood at 3.07 at the close of the market yesterday.

The Security industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 20, putting it in the top 8% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Zscaler, Inc. (ZS) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research