Can Zscaler Inc. (NASDAQ:ZS) Offer Investors Safety?

Zscaler Inc. (NASDAQ:ZS) shares traded higher over the last trading session, gaining 26.45% on 12/03/20. The shares fell to a low of $163.29 before closing at $185.61. Intraday shares traded counted 15.36 million, which was -611.27% lower than its 30-day average trading volume of 2.16M. ZS’s previous close was $146.79 while the outstanding shares total 131.68M. The stock’s Relative Strength Index (RSI) is 73.91, with weekly volatility at 6.82% and ATR at 9.83. The ZS stock’s 52-week price range has touched low of $35.00 and a $163.80 high.

Investors have identified the Software – Infrastructure company Zscaler Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $24.44 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.

Zscaler Inc. (ZS) Fundamentals that are to be considered.

When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. In terms of their assets, the company currently has 1581793000 million total, with 423901000 million as their total liabilities.

ZS were able to record 27.51 million as free cash flow during the third quarter of the year, this saw their quarterly net cash flow reduce by 63.37 million. In cash movements, the company had a total of 79.32 million as operating cash flow.

Potential earnings growth for Zscaler Inc. (ZS)

In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the third quarter of the year, Zscaler Inc. recorded a total of 125.89 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 31.6% coming in sequential stages and their sales for the third quarter increasing by 12.2%.

What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 31.36 million trying to sell their products during the last quarter, with the result yielding a gross income of 94.53 million. This allows shareholders to hold on to 131.68M with the revenue now reading -0.38 cents per share. This is a figure that is close to analyst’s prediction for their fourth quarter (-0.19 cents a share).

Having a look at the company’s valuation, the company is expected to record -0.70 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on ZS sounds very interesting.

Is the stock of ZS attractive?

In related news, Director, BLASING KAREN sold 3,000 shares of the company’s stock in a transaction that recorded on Nov 02. The sale was performed at an average price of 134.87, for a total value of 404,619. As the sale deal closes, the Chief Legal Officer, Schlossman Robert now sold 21,000 shares of the company’s stock, valued at 3,152,241. Also, Chief Financial Officer, CANESSA REMO sold 14,165 shares of the company’s stock in a deal that was recorded on Oct 06. The shares were price at an average price of 145.73 per share, with a total market value of 2,064,247. Following this completion of acquisition, the Director, BLASING KAREN now holds 3,000 shares of the company’s stock, valued at 428,577. In the last 6 months, insiders have changed their ownership in shares of company stock by 2.70%.

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