Zscaler, Inc. (ZS) Stock: A Technology Stock That’s Making Its Way For The Bottom

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Zscaler, Inc. (ZS) is headed up in the market in today’s trading session. The company, one that is focused on the technology space, is presently priced at $49.67 after tumbling -19.37% so far today. As it relates to tech stocks, there are quite a few factors that have the ability to generate movement in the market. News is one of the most common reasons for movement. Here are the most recent trending headlines surrounding ZS:

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Sep-11-19 05:00PM ZS LOSSES ALERT: Bernstein Liebhard LLP Announces Investigation of Zscaler Inc
02:32PM Zscaler stock suffers worst day ever on outlook, competition concerns
01:58PM Zscaler Analysts Say Cybersecurity Stock A ‘Long-Term Winner’ Despite Earnings Setback
01:16PM A Look At Benzinga Pro’s Most-Searched Tickers For September 11, 2019
10:40AM Exactly How to Trade Zscaler Stock on Earnings Plunge

Nonetheless, any time investors are making a decision with regard to investing, prospective investors should look at far more than just news, this is especially the case in the ever changing technology sector. Here’s what’s happening in regard to Zscaler, Inc..

The Performance That We’ve Seen From ZS

While a decline in a single session, like the move that we’re seeing from Zscaler, Inc. might make some investors unhappy, a single session fall alone shouldn’t be the basis of a decision to, or not to, invest in a stock. It’s generally a good idea to look at trends experienced by the stock just a single session. When it comes to ZS, here are the returns on investment that investors have experienced:

  • Weekly – Throughout the last 7 days, ZS has generated a price change that amounts to -26.86%.
  • Past Month – The monthly performance from Zscaler, Inc. works out to -40.31%.
  • Past Quarter – Over the past quarter, the company has generated a return on investment that works out to -35.64%
  • Past 6 Months – In the last 6 months, we’ve seen a change that equates to -23.35% from the company.
  • YTD – Since the open of this year ZS has generated a ROI of 26.68%.
  • Annually – Finally, over the past full year, investors have seen movement amounting to 8.54% from ZS. Throughout this period, the stock has traded at a high price of -44.53% and a low of 61.69%.

Ratios To Pay Attention To

Digging into a few key ratios having to do with a company generally gives investors an understanding of how dangerous and/or rewarding a an investment option may be. Below are a few of the most important ratios to look at when digging into ZS.

Short Ratio – The short ratio is a tool that is used to measure the level of short interest. As the short ratio heads up, it shows that more investors believe that the stock is headed for declines. In general, strong technology stocks can carry a lower short ratio. However, we tend to see a lot of short squeezes in the industry. Nonetheless, in relation to Zscaler, Inc., it’s short ratio is 2.59.

Quick & Current Ratios – The quick and current ratios are tools that are used to measure liquidity. Essentially, they measure If a company is able to pay for its debts when they come due using quick assets or current assets. Because in tech, companies rely heavily on continued investor support as they work to bring new technologies to market, the quick and current ratios can look damning. However, quite a few good picks in the technology space come with good current and quick ratios. As it relates to ZS, the quick and current ratios total up to 2.10 and 2.10 respectively.  

Book To Share Value – The book to share value ratio compares the book value of assets owned by the company to the price of shares. In this particular case, that ratio works out to 2.30.

Cash To Share Value – Finally, the cash to share value comparison compares the total amount of cash the company has on hand to the value of shares. When it comes to ZS, the cash to share value ratio is 2.68.

Smart Money Follows Big Money

Humans that are into investing seem to be infatuated with the term “Smart money follows big money.” It makes sense. Big money became big money by making smart decisions in the market. So, by following the moves of big money institutions and insiders, we can get a glimpse of what market pros think about a stock. When it comes to big money interest in ZS, here’s what we’re seeing:

  • Institutions – At the moment, institutions hold 34.10% of the company. However, it’s important to mention that institutional ownership has seen a move of -0.35% throughout the last quarter.
  • Investors On The Inside – As far as insiders go, those close to the company currently hold 2.30% of the company. Their ownership of the company has seen a move of 0 over the past 3 months.

How Analysts Feel About Zscaler, Inc.

While it’s never a smart idea to avoid doing your due diligence and blindly following the thoughts of analysts, it is a smart idea to use their opinions in order to validate your own opinions before making investment decisions in the tech sector. Here are the most recent moves that we have seen from analysts when it comes to ZS.

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Sep-11-19 Reiterated BMO Capital Markets Market Perform $100 → $60
Sep-10-19 Initiated Rosenblatt Neutral
Aug-02-19 Initiated BMO Capital Markets Market Perform
May-31-19 Reiterated Needham Strong Buy $65 → $89
May-31-19 Initiated Berenberg Hold

What We’ve Seen In earnings results

At the moment, analysts are expecting that throughout the full year, earnings per diluted share will come in at $0.19. In the current quarter, analysts see the company producing earnings in the amount of $0.02. Over the last 5 years, ZS has generated revenue in the amount of $0 with earnings coming in at 0. On a quarter over quarter basis, earnings have seen movement of -17.70% and revenue has seen movement of 60.80%.

What’s The Float Looking Like?

Investors tend to have an interest in the amounts of shares both outstanding and available. When it comes to Zscaler, Inc., currently there are 131.41M and there is a float of 63.18M. This means that out of the total of 131.41M shares of ZS currently in existence today, 63.18M are available to trade hands by the public.

It’s also important to pay attention to the short float. After all, if a high portion of the float available for trading is shorted, the overall opinion in the market is that the company is going to lose value. When it comes to ZS, the percentage of the float that is sold short is 9.93%. In general, concerning short percent of the float is any percentage over 40%. In my research, I have found that any short ratio over 26% is probably going to be a risky play.

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