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Zscaler, Inc. (ZS) Stock Analysis

Recovery setup · Catalyst-Driven edge

HoldVALUE-TRAP 1/5Moderate Confidence

Technology · Software - Infrastructure

Hold if already holding. Not a fresh buy at $130.47, but acceptable to hold if already in. Reasons: Negative momentum; Below 200-MA, MA slope -9.7%/30d (confirmed downtrend).

Zscaler provides a cloud-native Zero Trust security platform (Zscaler Zero Trust Exchange) deployed in 185+ countries with 9,400+ customers. Revenue from subscriptions reached $2,673.1M in fiscal 2025 (23% YoY growth); most revenue flows through a channel partner network, with... Read more

$130.47+61.9% A.UpsideScore 5.6/10#41 of 80 Software - Infrastructure
Stop $121.28Target $211.10(analyst − 8%)A.R:R 5.1:1
Analyst target$229.45+75.9%45 analysts
$211.10our TP
$130.47price
$229.45mean
$335

Hold if already holding. Not a fresh buy at $130.47, but acceptable to hold if already in. Reasons: Negative momentum; Below 200-MA, MA slope -9.7%/30d (confirmed downtrend). Chart setup: Death cross but MACD improving, RSI 63. Mixed signals. Hold existing position. Score 5.6/10, moderate confidence.

Passes 6/8 gates (favorable risk/reward ratio, clean insider activity, no SEC red flags, news events none recent, earnings proximity 28d clear, semi cycle peak clear). Fails on weak momentum and death cross (50MA < 200MA). Suitability: moderate.

Thesis

Rewards
Strong earnings beat streak (4/4)
Strong growth profile
Analyst upside: 62%
Risks
Negative momentum
Below 200-MA, MA slope -9.7%/30d (confirmed downtrend)

Key Metrics

P/E (TTM)
P/E (Fwd)29.4
Mkt Cap$21.7B
EV/EBITDA-294.3
Profit Mgn-2.3%
ROE-3.6%
Rev Growth25.9%
Beta1.11
DividendNone
Rating analysts58

Quality Signals

Piotroski F6/9

Options Flow

P/C0.66bullish
IV72%elevated
Max Pain$195+49.5% vs spot

Concentration Risks(10-K Item 1A)

  • MEDIUMCustomertop five channel partners28%
    10-K Item 1A: 'sales through our top five channel partners and their affiliates, in aggregate, represented 28% of our revenue for fiscal 2025'

Material Events(8-K, last 90d)

  • 2026-04-16Item 5.02LOW
    Raj Judge, EVP Corporate Strategy, resigned as officer effective April 15, 2026 and from the Board effective April 15, 2026; employment ends July 31, 2026. No disagreement with Company cited. No successor named.
    SEC filing →

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. Full disclaimer

Rating Breakdown

2 floor-breakers·1 ceiling hit

Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static

Quality Rank
2.1
Value Rank
2.3
Growth Rank
7.3

Price action weak — below key moving averages, no momentum carry. Needs a base before trend-continuation setups apply.static

Volume
0.0
Obv
1.0
Ma Position
1.0
Rsi
3.7
Macd
10.0
Volume distribution (falling OBV)Below 200-MA, MA slope -9.7%/30d — confirmed downtrend
GatesMomentum 3.1<4.5Death cross (50MA < 200MA)A.R:R 5.1 ≥ 1.5Insider activity: OKNo SEC red flagsNEWS EVENTS NONE RECENTEARNINGS PROXIMITY 28d clearSEMI CYCLE PEAK CLEARRecoverySuitability: Moderate
RSI
63 · Neutral
20D MA 50D MA 200D MADEATH CROSSSupport $114.62Resistance $150.50

Price Targets

$121
$211
A.Upside+61.8%
A.R:R5.1:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeCautious

Risk Alerts

! Momentum score 3.1/10 — below 4.5 minimum
! Death cross — 50-day MA below 200-day MA

Earnings

B
B
B
B
4/4 beats
Next Earnings2026-05-28 (28d)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is ZS stock a buy right now?

Hold if already holding. Not a fresh buy at $130.47, but acceptable to hold if already in. Reasons: Negative momentum; Below 200-MA, MA slope -9.7%/30d (confirmed downtrend). Chart setup: Death cross but MACD improving, RSI 63. Mixed signals. Hold existing position. Target $211.10 (+61.8%), stop $121.28 (−7.6%), A.R:R 5.1:1. Score 5.6/10, moderate confidence.

What is the ZS stock price target?

Take-profit target: $211.10 (+61.9% upside). Target $211.10 (+61.8%), stop $121.28 (−7.6%), A.R:R 5.1:1. Stop-loss: $121.28.

What are the risks of investing in ZS?

Negative momentum; Below 200-MA, MA slope -9.7%/30d (confirmed downtrend).

Is ZS overvalued or undervalued?

Zscaler, Inc. trades at a P/E of N/A (forward 29.4). TrendMatrix value score: 5.8/10. Verdict: Hold.

What do analysts say about ZS?

58 analysts cover ZS with a consensus score of 4.1/5. Average price target: $229.

What does Zscaler, Inc. do?Zscaler provides a cloud-native Zero Trust security platform (Zscaler Zero Trust Exchange) deployed in 185+ countries...

Zscaler provides a cloud-native Zero Trust security platform (Zscaler Zero Trust Exchange) deployed in 185+ countries with 9,400+ customers. Revenue from subscriptions reached $2,673.1M in fiscal 2025 (23% YoY growth); most revenue flows through a channel partner network, with the top 5 partners representing 28% of fiscal 2025 revenue.

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