Is this U.S.-China selloff a buy? A top Wall Street voice weighs in
Zscaler Inc. stock reached a new 52-week high, touching 319.68 USD, with InvestingPro data showing the company currently trading above its Fair Value. This milestone reflects a significant upward trajectory, with the stock delivering a 74.72% return year-to-date. The cloud security company has demonstrated robust growth, maintaining impressive gross profit margins of 77% and achieving 23.3% revenue growth in the last twelve months. According to InvestingPro, 21 analysts have revised their earnings upwards for the upcoming period. This surge in stock price underscores investor confidence in Zscaler’s strategic positioning and market potential, with the company now commanding a market capitalization of $49.1 billion. The 52-week high marks a pivotal moment for the company, as it continues to expand its footprint in the cybersecurity industry. Discover 13 additional exclusive insights about Zscaler with an InvestingPro subscription.
In other recent news, Zscaler reported its fourth-quarter 2025 earnings, which revealed a significant earnings per share (EPS) miss. The company posted an EPS of -$0.11, falling short of the expected $0.80, marking a surprise of -113.75%. However, Zscaler did surpass revenue expectations, reporting $719 million compared to the forecasted $706.95 million. Following these results, Freedom Capital Markets upgraded Zscaler’s stock rating to Buy, citing strong performance across key business areas and raising its price target to $320 from $280. Additionally, RBC Capital increased its price target for Zscaler to $350, maintaining an Outperform rating, driven by confidence in the company’s market opportunity. Truist Securities reiterated its Buy rating and $350 price target, expressing increased confidence in Zscaler’s long-term platform strategy. Canaccord Genuity also raised its price target to $340, highlighting Zscaler’s robust technology and platform uptake as key factors. These developments reflect a mix of strong revenue performance and analyst confidence despite the EPS miss.
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