How to Trade Zscaler After Fiscal Q1 2025 Performance
Founded in 2007, Zscaler is an American cloud security company. It specialises in providing cloud-based services to protect enterprise networks and data. Its flagship product is the Zero Trust Exchange which offers a comprehensive cybersecurity solution. The company boasts over 7,300 customers worldwide, including over 400 of the Forbes Global 2000 companies, resulting in over 500 billion daily transactions on its platform.
Learn more about Zscaler's fiscal first-quarter 2025 performance and what analysts are forecasting for the stock.
| Stock: | Zscaler Inc. |
| Symbol for Invest.MT5 Account: | ZSUS |
| Date of Idea: | 10 December 2024 |
| Time Line: | 1 - 6 months |
| Entry Level: | $218.00 |
| Target Level: | $270.00 |
| Position Size for Invest.MT5 Account: | Max 5% |
| Risk: | High |
- The Invest.MT5 account allows you to buy real stocks and shares from some of the largest stock exchanges in the world.
All trading is high risk and you can lose more than you risk on a trade. Never invest more than you can afford to lose, as some trades will lose and some trades will win. Start small to understand your own risk tolerance levels or practice on a demo account first to build your knowledge before investing.
Zscaler Fiscal Q1 2025 Performance
Here are some of the key highlights from the fiscal first-quarter 2025 earnings report from Zscaler:
- Earnings of 77 cents per share vs 63 cents expected
- Revenue of $628 million, up 26% year-over-year
- Calculated billings: $517 million, up 13% year-over-year
- Increased full-year fiscal 2025 revenue guidance of $2.623 billion to $2.643 billion
On the face of it, Zscaler beat analyst estimates on most financial metrics such as earnings and revenue, showing a growing demand for its services. As companies spend more on cybersecurity solutions, Zscaler increased its full-year fiscal 2025 guidance.
The management team believe the company is well positioned to capture new opportunities as it combines its Zero Trust platform with new AI tools, with metrics exceeding their own guidance.
However, even though the earnings report was strong, the stock price fell on the news sending the stock down nearly 7% on the year, so far - a large difference from its rivals Cloudflare and Datadog which are up over 25% on the year, so far.
The announcement that its CFO Remo E. Canessa is retiring has affected overall sentiment around the stock. Canessa has been in the position since 2017 and a successor has not yet been appointed.
This uncertainty, and the fact the stock is trailing its rivals by some margin, is just one reason why more analysts are moving to a hold rating on the stock, as highlighted below.
Zscaler Stock Forecast - What do the Analysts Say?
According to 31 analysts polled by TipRanks for an Zscaler stock forecast in the past 3 months, there are currently 21 buy, 10 hold and 0 sell ratings on the stock. The highest price level for a Zscaler stock forecast is $270.00 with the lowest price target at $180.00.
The average price target for a Zscaler stock forecast is $224.68.
An Example Trading Idea for the Zscaler Stock Price
An example trading idea for the Zscaler share price could be as follows:
- Buy the stock on a break above $218.00 to allow for volatility.
- Target just below the highest analyst price target of $270.00.
- Keep your risk small at a maximum of 5% of your total account.
- Time Line = 1 – 6 months
- If you buy 10 Zscaler shares:
- If target is reached = $520.00 potential profit [($270.00 - $218.00) * 10 shares].
Remember that markets go up and down and it is unlikely the share price will move up in a straight line. In fact, it may even go much further down before it rises, especially as the stock is currently down on the year, trailing behind its rivals in the industry.
Be sure to exercise good risk management and always know how much you could potentially lose on a trade and the risks involved, as well as the costs.
With the Admiral Markets Invest.MT5 account you can buy and sell US stocks with a commission from $0.02 per share. This means buying 10 shares in Zscaler stock would result in a commission of $0.20 ($0.02 * 10 shares) for executing a per-side transaction.
However, there is a low minimum transaction fee of $1. So, the example trading idea above would result in a commission of just $1 overall.
How to Buy Zscaler Stock in 4 Steps
With Admiral Markets, you can buy shares with a commission of just $0.02 per share and a low minimum commission of just $1 on US stocks.
- Open an account with Admiral Markets to access the dashboard.
- Click on Trade or Invest on one of your live or demo accounts to open the web platform.
- Search for your stock in the search window at the top.
- Input your entry, stop-loss and take profit levels in the trading ticket.
Click on the banner below to trade Zscaler stock today ▼▼▼
Do You See the Zscaler Stock Price Moving Differently?
Remember that all analytics and trading ideas are based on the personal view and experience of the author.
If you believe there is a higher chance Zscaler share price will move lower, then you can also trade short from a CFD (Contracts for Difference) trading account which Admiral Markets also provide.
The Trade.MT5 and Trade.MT4 account allows you to speculate on the price direction of stocks and shares using CFDs.
This means you can trade long and short to speculate on rising and falling stock prices.
INFORMATION ABOUT ANALYTICAL MATERIALS:
The given data provides additional information regarding all analysis, estimates, prognosis, forecasts, market reviews, weekly outlooks or other similar assessments or information (hereinafter “Analysis”) published on the websites of Admiral Markets investment firms operating under the Admiral Markets trademark (hereinafter “Admiral Markets”) Before making any investment decisions please pay close attention to the following:
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- The Analysis is prepared by an independent analyst Jitanchandra Solanki, Freelance Contributor (hereinafter "Author") based on personal estimations.
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