ZS looks good hereZS breaking out, it's held that $150 area like a champ, i expect the upper resistance levels to be tested soon. This could be an explosive move once the $235 level is conquered.
ZS trade ideas
$ZS - ascending triangle pattern breakout incoming.ZS - Stock forming ascending triangle pattern on daily time frame and approaching $200 resistance level which it failed thrice or higher. looking for calls above that level for a move towards $220 and higher. Stock is strong on indicators. on high watch
Zscaler: Wave (2) Correction! After a rapid rise in early September, the ZS stock managed to reach the highs from August, but there was no significant acceptance at this level. Structurally, the upward movement isn't sufficient for us to consider wave (2) as completed. So far, the bullish signals lack a clear impulsive character, and we expect new lows during the magenta wave (2), which should primarily end above the support at $84.93. Once a trend reversal has been initiated, the subsequent wave (3) should push through the resistance at $251.45. According to our 33% likely alternative scenario, this could also happen directly.
Long swingI'm deploying a multi-timeframe approach here, focusing on a swing trade setup that aligns with both trend and momentum indicators. Here's the core of the strategy:
Entry Criteria: I look to enter on a break above a recent higher high combined with a flat to rising 5-day moving average. Additionally, I’m observing the anchored VWAP from the most recent high (to the left on the chart); it should ideally be flat or rising to confirm sustained interest.
Volume and Price Requirements: Only trading stocks with at least 300,000 shares in daily volume and a price above $3, ensuring liquidity and relevance for momentum.
Trend Confirmation: On the daily timeframe, the stock must be making higher highs and fall within an early Stage 2 uptrend based on Stage Analysis, indicating the start of an uptrend.
Stop Loss: My stop is set just below a recent significant low (higher low) on the 30-minute chart to keep risk in check. If this low is penetrated before entry, I cancel the trade to avoid premature breakdowns.
ZS eyes on $ 175.xx: key resistance that could mark the "Bottom"ZS bounced from the major/critical support.
Now testing first seriou and proven resistance.
Break and Retest could mark+seal the bottom.
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Anticipating Growth Post-CorrectionKey arguments in support of the idea.
▪ We believe the stock is currently undervalued, given the strong fundamentals of the business.
▪ Zscaler stock presents an attractive entry point, with appealing valuation levels across key multiples.
Investment Thesis
Zscaler Inc. (ZS) is an American cloud cybersecurity company headquartered in San Jose, California. The Company provides cloud-based services designed to protect enterprise networks and databases and is ranked among the top 10 companies in its sector. Zscaler has been recognized as a Leader in the Gartner Magic Quadrant 2024 rankings for the Security Service Edge (SSE) category, marking its third consecutive year in this position. Before its inclusion in the Magic Quadrant for SSE, the Company was acknowledged as a leader for ten consecutive years in the Magic Quadrant for Secure Web Gateway (SWG). Zscaler offers an all-in-one Zero Trust Exchange platform, which delivers a comprehensive suite of cloud-based security services. This platform secures all enterprise traffic, provides intelligent routing through the fastest channels, and streamlines access management.
We believe the stock is currently undervalued, given the strong fundamentals of the business. The recent stock price correction, following weaker-than-expected management guidance for the quarter, was influenced by several key factors: 1) the introduction of lower-margin products in their early stages, including ZDX, Zero Trust solutions, and AI analytics; 2) the application of a projected non-GAAP tax rate of 23%.; 3) increased capital expenditures for data centers, driven by investments in cloud and AI infrastructure upgrades; and 4) staffing adjustments related to the new go-to-market strategy. Zscaler shares have corrected by over 19% due to the factors mentioned above. Nevertheless, business fundamentals remain stable, and the impact of the new tax rate and personnel changes is expected to be one-time. New product introductions and increased capital expenditures on data processing centers are fostering a favorable environment for the Company’s organic growth. Additionally, strong demand for cybersecurity services is a key growth driver. Organizations are investing heavily to protect against hacks, data breaches, and potential losses, reinforcing Zscaler's resilience and growth prospects. Cyberattacks globally have surged, with a 30% increase in weekly attacks on corporate networks in Q2 2024 compared to the same period in 2023, and a 25% rise from Q1 2024. On average, organizations face 1,636 attacks per week, highlighting the escalating threat landscape.
Zscaler stock presents an attractive entry point, with appealing valuation levels across key multiples. The Company’s stock is currently trading at a discount relative to key multiples when compared to the segment leader and its historical valuation levels. For instance, Zscaler's P/FCF ratio for the next 12 months is 45.1x, which is lower than that of its main competitor, CrowdStrike Holdings, at 58.7x. Additionally, this ratio is below the Company’s historical average of 64.9x. This suggests that the stock is an attractive entry point and highlights its potential for further growth.
The target price for the shares is $195, the rating is Buy. We recommend setting a stop loss at $150.
can ZS stay above $167 by Friday 09/13?FQ4 results were solid. Billings grew 27% YoY, above consensus, and FY25 outlook was largely in line. However, with guidance assuming steep 2H accel compounded by salesforce disruption and more competition, investors remain cautious. Stock likely settles around $170 range, or ~30X EV/FY26 FCF.
ZS - resistance at $163.75 needs to break to move towards $180ZS - stock has big earnings gap to fill. Stock is oversold on indicator level but bouncing twice off $155.80 level also previous support. Stock is rejecting $163.75 twice after earnings. looking for calls above that level for a move towards $180 50% FIB retracement level.
Zscaler's Stock Plummet 18.83% on Q2 Earnings ShockZscaler (NASDAQ: NASDAQ:ZS ), a prominent cloud security platform, experienced a significant drop of 17.8% in pre-market trading after its latest earnings release. While the company beat analysts' expectations on billings, revenue, and operating income for the quarter, its guidance for billings in the upcoming year fell short of market expectations. This mixed outlook has investors questioning the company’s near-term growth potential.
Strengths and Concerns
Zscaler’s recent quarter was a mix of positives and negatives. On the bright side, Zscaler (NASDAQ: NASDAQ:ZS ) reported $592.9 million in sales, beating the expected $567.9 million, and delivered adjusted earnings of $0.88 per share, significantly higher than the forecasted $0.69 per share. The company also made strides towards GAAP profitability by reducing its losses from $1.40 per share in fiscal 2023 to $0.39 per share this fiscal year.
However, concerns loom over the future. Management’s billings growth projection—13% in the first half of the fiscal year accelerating to 23% in the second half—didn't sit well with investors, reflecting uncertainty about the company's ability to sustain its momentum. Furthermore, Zscaler's guidance for non-GAAP earnings per share of $0.62 in fiscal Q1 2025 and $2.84 for fiscal 2025 was below the consensus forecast of $0.73 and $3.33, respectively. This signals potential headwinds that could slow down growth and delay GAAP profitability even further, now projected to be reached beyond 2027.
A Volatile Path
Technically, Zscaler’s stock has displayed high volatility, with notable swings in the last year, including eight moves exceeding 5%. The latest 17.8% drop is particularly significant, indicating a strong reaction from the market to the latest earnings report and future guidance.
The stock currently trades 37.8% below its 52-week high of $254.93, making it a potentially attractive buy for long-term investors looking for a discount on a high-growth cloud security leader. However, the sell-off has pushed Zscaler (NASDAQ: NASDAQ:ZS ) below key support levels, signaling bearish sentiment. The RSI (Relative Strength Index) which is sitting at 28.56 has also dipped into oversold territory, suggesting that while the stock is under pressure, there could be a rebound opportunity once the market stabilizes.
Outlook and Market Sentiment
The broader market reaction to Zscaler’s report highlights concerns over the cybersecurity industry’s near-term prospects, particularly as it faces challenges like economic uncertainty and shifts in customer spending behavior. Similar pressures have been seen across the sector, with rivals like Palo Alto Networks also facing guidance cuts and growing pains due to strategic shifts.
Despite the negative sentiment, Zscaler’s consistent revenue growth and progress towards profitability underscore the company’s potential. Investors should closely monitor upcoming earnings to see if Zscaler can deliver on its promise of accelerating billings growth in the latter half of the year.
Is Zscaler a Buy?
The significant drop in Zscaler’s share price could present a buying opportunity for those willing to weather short-term volatility in exchange for long-term gains. With solid fundamentals, a clear path toward profitability, and continued innovation in the cybersecurity space, Zscaler (NASDAQ: NASDAQ:ZS ) remains a compelling play, albeit one that requires patience and a tolerance for risk.
Investors should watch key support levels and consider Zscaler’s guidance trajectory in their decision-making. The market’s current apprehension presents a chance to buy into a high-quality name at a discounted price, though further volatility is expected as the company navigates through its challenges.
ZS Zscaler Options Ahead of EarningsIf you haven`t bought the dip on ZS:
Now analyzing the options chain and the chart patterns of ZS Zscaler prior to the earnings report this week,
I would consider purchasing the 200usd strike price Calls with
an expiration date of 2024-9-20,
for a premium of approximately $11.60.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
ZS.Nas ZScaler a bigger picture.Often the bigger Picture is Required for future potential.
There is a Debate as to if the past cannot be the future value, however for me it shows potential, so I do use this as a Target to achieve. However I never go below -10% .
ZS Remains Risky due to the Crowdstrike selloff.
Follow the Larger Trend. Use 2 to 3 time frames to see the 15M, 4H and 1W Trend. Make your descisions based on the 1W and 4H.
I also use the IMACD indicator to see the rate of change, also the CCI Stochastic.
I mark each day vertical using Alt+V. And Alt+J for the Horizontal Notes.
For your Shorter Trades use the FIBs to Enter or Exit.
Also seen will be many call-outs I use to Diarise my decisions. This shows where I went Wrong or Right.
ZS is in Flux for now, and I do expect a Pop Soon.
PV=FV/(1+r)^t Present Value = Future Value / (1 + R Rate of Return ) ^ Time.
So rather deploy Cash for a better Gain is the Simple meaning.
Time is Valuable. Don't sit in a Trade or Investment if looks it will not perform.
Getting out early (With Profit) never lost Money.
We all have FOMO - Just Manage it.
Smash that Rocket Boost Button and also follow me should you Appreciate my Studies and do comment. I try to Reply and also Assist where possible.
Kind Regards
Graham.
ZS is BullishBulls are in control of the price action as higher highs and higher lows are being printed consistently. With no divergence on RSI, the trend is most likely to continue. Targets are mentioned on the chart.
ZS technical resistance.AI is becoming increasingly significant in the US stock market, raising questions about security and protection. Zscaler (ZS) provides a solution for securing AI applications. Although not an investor, I observe that the stock has rallied since earnings and is now testing a significant resistance level around $200, dating back to early March. Despite the necessity of security in AI, the adoption rate of AI and chatbots in the USA is still low (around 5%). Therefore, I'm looking to short ZS if a bearish candle closes below $201.65.
$ZSNASDAQ:ZS this is building a nice solid consolidation, it already failed one breakout. Once these saas/cybersecurity stocks breakout keep an eye on this.
Short-Term Bullish on ZSI am Counting on Growing Green MACH yearly, which just kicked in. I also feel ZS has been drawn out too much, so there is short-term relief up to 210-220, Hence riding with the calls expiring in October.
Zscaler (ZS): RSI Divergence in Market Downturn + other signals- A lot of OBV daily and weekly signals
- Bullish daily Candle when market is weak overall.
- In a sector that might looking to turn around from going down since february.
- A lot of vol sell day before
- False breakdown from a 3 week consildation.
- Profitable company.
Zscaler Stock Jumps 5.94% on Unexpected ProfitZscaler's stock surged 5.94% on an unexpected profit, following a surprise profit of $19.1 million for the quarter. The company posted a revenue of $553.2 million, up 32% from last year and topped analysts' expectations of $535.2 million. Zscaler's fourth-quarter revenue guidance was mostly in line with estimates of $567.6 million, which would be up nearly 25% from the prior-year's reported figure.
The cybersecurity industry has been in a tough spot in recent months, with profit and sales projections from competitors like Palo Alto Networks and Cloudflare dragging down stocks around the industry. Zscaler shares ( NASDAQ:ZS ) were up more than 7% to $167.97 as of 11:03 a.m. ET Friday, but are still down about 24% for the year.
Cybersecurity has become more crucial in recent years amid rising online threats and a rapid rise in artificial intelligence that enable hackers to execute advanced cyberattacks. The cloud-based security solution provider expects fourth-quarter revenue to be between $565 million and $567 million, with its midpoint above market expectation of $565.1 million, according to LSEG data.
Zscaler projects ( NASDAQ:ZS ) adjusted earnings per share of about 69 cents to 70 cents in the fourth quarter, compared with estimates of 68 cents. CEO Jay Chaudhry said that Zero Trust security remains a top IT priority, and an increasing number of enterprises are adopting their platform. Analysts expect budgets for cybersecurity products to rise in the second half, with some customers still waiting for the economy to improve.
The U.S. Department of State has been working with security vendors, including Zscaler, to secure its network after China-linked hackers stole tens of thousands of emails by breaching Microsoft's network last year.
Zscaler - solid financials overlooked by investors create BUY opZscaler (ZS) released solid financial results, above consensus expectations with positive surprise. In addition, ZS provided upbeat guidance for the Full year 2024 and for the next quarter, highlighting continuing growth (above market expectations)
Although on a technical chart the stock looks like a SELL, I see very limited downside potential for the stock given its updated fundamentals. In my view the stock currently presents interesting BUY reversal opportunity and ZS may outperform the market in the coming weeks.
The upside potential 56%+
5/30/24 - $zs - want to own more, but this tape says careful V5/30/24 - vrockstar - NASDAQ:ZS - genuinely pains me to not be super bull into this q - i have a peanut position b/c it's a core compounder for me, but it's small. i've seen all the B2B/ cyber pitches this quarter and NASDAQ:ZS and NYSE:S are today... and if we're playing the odds fam, it's almost hard to see how this sticks and runs at >10x sales, LSD fcf % generation (and a lot of stock comp). the cap isn't small either ( NYSE:S is smaller).
love the founder. best in biz. love the product. probably a top 3 cyber ( NASDAQ:PANW , NASDAQ:CYBR , NASDAQ:CRWD , NYSE:NET , NYSE:S - probably in that order)... but let's be clear, these valuations are simply NOT sticking in this rates paradigm. they should given what rates actually represent (GTFO USD...) but that's the alpha and the patience that come into the equation.
SO in a nutshell. i'm setup to be happy if they beat - will have a small position to decide how to manage - a beat and stock down - great - will figure out how to size up either in print or in coming q (depending on what the reaction is). if it's a miss - let's readdress in the comments. will be listening to the call.
stay solvent. stay safe. have fun. leave any comments below if you'd like contribute to this POV
-V
oh. here's the trends on searches that tbh look stellar, but it's not consumer, it's B2B - so take it for what it's worth, perhaps these are more of a leading indicator than not/ and also let's see how mgmt communicates 2H etc.
trends.google.com
peeking at $ZS Fibonacci levels before its ERZscaler's key competitors:
Cisco: Cisco offers a range of security solutions, including network firewalls and zero-trust security.
Palo Alto Networks: Known for its next-generation firewalls, Palo Alto Networks provides robust threat protection.
Forcepoint: Forcepoint focuses on data-first security.
Netskope: Netskope is a leader in Secure Access Service Edge (SASE) solutions.
Microsoft: Microsoft offers various security services, including cloud-based solutions.
Akamai Technologies: Akamai specializes in web and internet security.
Zscaler (ZS): Potential Pitfalls & Buying Risks ExplainedAt Zscaler, we believe that the subordinate Wave 3 has definitely concluded at 259.61$. Currently, we are in search of Wave 4, which is turning out to be unusually long and has already dropped below the critical level that we had considered as the last reversal point. This significantly diminishes the likelihood of a successful entry, prompting us to refrain from new engagements for now.
Moreover, the RSI indicates that the stock is oversold, which might suggest a buying opportunity. However, given the overall market dynamics and Zscaler's specific situation, we remain cautious. Should the price fall below the 163$ level, it would potentially invalidate our current scenario and suggest that our analysis might be incorrect, boding poorly for Zscaler's outlook.
Considering the current market uncertainties and specific risks associated with Zscaler, we have decided not to place any new entries at this time.
Zscaler (ZS): Breaking Through the CloudZscaler (ZS): NASDAQ:ZS
At the American cloud company Zscaler, we have completed the first 5-wave cycle at the level of $376.11, have since developed Wave II at $84.93, and are now in the overarching Wave III, which should naturally extend far beyond our Alltime High, thus above the current Wave I to also be valid. Currently, we are in the first 5-wave impulse upwards to complete the Wave (1).
We have ended the subordinate Wave 3 here precisely or almost exactly at the level of 161.8%, have since formed a stronger downward trend, and are now in the conclusion of Wave 4, and as can be seen on the smaller timeframe, our entry point is already indicated for Wave 4. This should reach between 38.2% and 61.8%. If we should fall below that, we should also reconsider this bullish scenario, but we would set a market entry here as we have already fallen into the buying zone and expect a rise above Wave 3, so above the level of $259.6.
ZS short term upward reversal. ZS is trying to reverse downtrend. Bearish upthrust has been weakening over the last two weeks and price has already set daily higher low on the pre-market. For reversal to happen bulls must protect 192.5 and build value above 196.
If the reversal happens it will probably not to last long as we're in a monthly consolidation. But it still can provide some nice profit
Example of a possible trade is shown on the graph.
Disclaimer
I don't give trading or investing advice, just sharing my thoughts.
