How to Trade Zscaler After Fiscal Q2 2025 Performance

March 11, 2025 16:12

Founded in 2018, Zscaler is a software-as-a-service (SaaS) company based in San Jose, California. It focuses on cloud-based cybersecurity solutions to protect enterprise networks and data. Learn more about Zscaler's fiscal second quarter 2025 performance and what analysts are forecasting for the stock.

Stock: Zscaler Inc.
Symbol for Invest.MT5 Account: ZSUS
Date of Idea: 10 March 2025
Time Line: 1 - 12 months
Entry Level: $212.00
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.
  • Risk Warning: Past performance is not a reliable indicator of future results or future performance. 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 Q2 2025 Performance

Here are some of the key highlights from the fiscal second quarter 2025 earnings report from Zscaler:  

  • Earnings per share: 78 cents per share vs 69 cents per share estimated 
  • Revenue: $648 million vs $636 million estimated 
  • Revenue growth of 23% year-over-year 
  • Net income loss of $7.7 million, less than $28.5 million same time the prior year

Zscaler beat analyst estimates on both earnings per share and revenue. Its recent business highlights included an announcement that Nokia is migrating its online security to the Zscaler Zero Trust Exchange. The quarter also saw new solutions for its clients to prevent newer ransomware attacks and products that cut firewall and infrastructure spending in half.

Since Zscaler's initial public offering (IPO) in March 2018, the stock rallied over 1,000% to a record high of $376.11 by November 2021. However, it subsequently fell nearly 80% to $84.93 by May 2023. While the stock rose around 6% after the earnings call, it is still below its all-time high and the high of 2024 at $259.61.

The volatile nature of Zscaler's stock price has led to a mix in ratings of its stock price from analysts as highlighted below.

Zscaler Stock Forecast - What do the Analysts Say?

According to 29 analysts polled by TipRanks for a Zscaler stock forecast in the past 3 months, there are currently 29 buy, 5 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 $195.00. 

The average price target for a Zscaler stock forecast is $237.61.

Source: TipRanks, 10 March 2025. Past performance is not a reliable indicator of future results.

 

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 continuation above its earnings price rose around $212.00 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 – 12 months  
  • If you buy 10 Zscaler shares:  
    • If target is reached = $580.00 potential profit [($270.00 - $212.00) * 10 shares].

Remember that markets go up and down. In fact, the stock price may even go much further down, especially due to the volatile nature of Zscaler's share price.

It is important 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 minimum transaction fee of $1. So, the example trading idea above would result in a commission of $1 overall.

How to Buy Zscaler Stock in 4 Steps  

With Admiral Markets, you can buy shares in US companies like Zscaler with a commission from $0.02 per share and a minimum commission of $1. 

  1. Open an account with Admiral Markets to access the dashboard.
  2. Click on Trade or Invest on one of your live or demo accounts to open the web platform.
  3. Search for your stock in the search window at the top.
  4. Input your entry, stop-loss and take profit levels in the trading ticket.
Source: Admiral Markets. MetaTrader 5 Web Trader. Zscaler. Monthly. Date: March 2018 to March 2025, captured on 10 March 2025. Past performance is not a reliable indicator of future results or future performance.

 

 

Do You See the Zscaler Stock Price Moving Differently?   

If you believe there is a higher chance the share price of Zscaler will move lower, then you can also trade short using CFDs (Contracts for Difference). However, these have higher associated risks and are not suitable for all investors. Learn more about CFDs in this How to Trade CFDs article.

INFORMATION ABOUT ANALYTICAL MATERIALS: 

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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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Jitanchandra Solanki
Jitanchandra Solanki Financial Markets Author, Admirals London

Jitanchandra is a financial markets author with more than 15 years experience trading currencies, indices and US equities. He is an accredited Market Technician with a BA Hons degree.