Zscaler

ZS

Market cap $47.9B

Zscaler stock is retreating after attempting to break out of a cup base. The cybersecurity stock has gained around 69% so far this year.

Zscaler (ZS) closed the most recent trading day at $313.04, moving +1.02% from the previous trading session.

All five have stakes in the artificial intelligence field, whether it's cybersecurity, data analytics or defense projects.

Goldman Sachs is doubling down on artificial intelligence, highlighting infrastructure and data management as prime investment opportunities despite market concerns over high valuations.

In the most recent trading session, Zscaler (ZS) closed at $292.75, indicating a -4.09% shift from the previous trading day.

Zscaler (ZS) has received quite a bit of attention from Zacks.com users lately. Therefore, it is wise to be aware of the facts that can impact the stock's prospects.

It seems like every week, there is another announcement from a major institution, retailer, or other large corporate entity reporting that it suffered a cybersecurity breach that compromised client or customer data.

Zscaler is rapidly innovating in AI Security, Zero Trust Everywhere, and Data Security, driving robust enterprise adoption and outperformance. Zscaler reported strong Q4 FY25 results, with 21% YoY revenue growth, expanding large customer base, and accelerating adoption of its Z-Flex purchasing program. There may be some short-term margin pressures, due to rapid product innovation, but long-term operating leverage and revenue growth remain compelling.

Zscaler remains a top growth pick, benefiting from strong billings growth and robust fundamentals amid a tech-driven market rally. In the company's latest Q4, Zscaler achieved 32% y/y billings growth, which accelerated seven points versus 25% growth in Q3. ARR also crossed $3 billion, buoyed by new agentic AI security products, and covers ~92% of the company's FY26 guidance, leading to potential upside.

RBC Capital Markets analysts continue to believe the market opportunity for Zscaler Inc. (NASDAQ:ZS)  is larger than investors anticipate, which should help the company drive durable growth and margin expansion.  In a note to clients on Thursday, the analysts raised their target price on Zscaler to $350 per share from $335, while maintaining an ‘Outperform' rating on the stock.