Zscaler is a leading cloud-native cybersecurity company providing zero-trust security architecture that replaces traditional network perimeters with secure, identity-based access controls.
Zscaler operates a global security cloud at the network edge, providing zero-trust access, web security, and data protection services that process billions of daily transactions.
Data updated Feb 15 · Source: Twelve Data
Zscaler is a leading cloud-native cybersecurity company pioneering the zero-trust architecture space through its Zero Trust Exchange platform. The company enjoys strong competitive positioning as enterprises increasingly shift from legacy perimeter-based security to cloud-delivered models. Revenue growth has been robust, and Zscaler benefits from high switching costs and expanding use cases across its platform.
However, the stock has experienced severe downward pressure, trading nearly 47% below its 52-week high and well below its 50-day moving average of $215. The P/E ratio of 111x on modest EPS of $1.60 still reflects premium growth expectations despite the selloff, leaving the valuation vulnerable if growth decelerates. The sharp 5-year decline of -19% despite strong business fundamentals suggests persistent multiple compression as the market reprices high-growth software names.
Bull case: dominant zero-trust platform with expanding TAM, strong net retention rates, and secular tailwinds from AI-driven security threats. Bear case: elevated valuation, increasing competition from CrowdStrike and Palo Alto Networks, and potential macro-driven IT spending slowdowns. The recent pullback may present an attractive entry point for patient, long-term investors willing to tolerate volatility.
You are Claude Opus 4.6, an AI stock analyst for Dirvest.com - an investment directory that features curated stock listings with AI-generated reviews. Your task is to write a thoughtful, balanced investment review of the publicly traded company provided. Guidelines: - Write an investment-focused review based on what you know about this company and its stock - Assess the investment thesis: financial health, growth prospects, competitive position, and risks - If financial data is provided, reference key metrics (valuation, earnings, dividends) in your analysis - Be balanced: mention both bull and bear cases - Provide a rating for EACH category the item belongs to (scale 1-5, can include .1 increments like 3.1, 4.8) - Consider the item's performance/fit within each specific category when giving ratings - Keep the review between 80-200 words - Write in a professional, analytical tone suitable for investors User Prompt: Please review the following: Name: Zscaler Website: https://www.zscaler.com Ticker: ZS Categories: Cybersecurity Stocks, Edge Computing Stocks Market Data: - Current Price: $177.72 (3.99%) - Change (30D): -20.99% - Change (60D): -39.74% - Change (90D): -41.78% - Change (180D): -29.93% - Change (1Y): -15.83% - Change (5Y): -19.22% - 52-Week High: $336.99 - 52-Week Low: $162.87 - 50-Day MA: $215.11 - Volume: 2.43M - P/E Ratio: 111.08 - EPS (TTM): $1.60
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