Is Zscaler Stock a Buy at the Current Valuation?

Motley Fool2022-01-13

Cybersecurity threats are everywhere, and they aren't going away. One report estimates that the total cost of cybercrime to the global economy is at least 1 trillion dollars annually. With this in ...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

KingKong87
2022-01-14
KingKong87
[Smile]
ivy888
2022-01-13
ivy888
Like
Residue
2022-01-13
Residue
🤩

Leave a comment

107

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2202301667?lang=en_US&edition=fundamental","thumbnail":"","is_english":true,"pubTime":"2022-01-13 11:10","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2202301667","market":"us","top_or_hot":-1,"title":"Is Zscaler Stock a Buy at the Current Valuation?","media":"Motley Fool","content":"<div>\n<p>Cybersecurity threats are everywhere, and they aren't going away. One report estimates that the total cost of cybercrime to the global economy is at least 1 trillion dollars annually. With this in ...</p>\n\n<a href=\"https://www.fool.com/investing/2022/01/12/is-zscaler-stock-a-buy-at-the-current-valuation/\">Source Link</a>\n\n</div>\n","source":"fool_stock","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Is Zscaler Stock a Buy at the Current Valuation?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nIs Zscaler Stock a Buy at the Current Valuation?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-01-13 11:10 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2022/01/12/is-zscaler-stock-a-buy-at-the-current-valuation/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Cybersecurity threats are everywhere, and they aren't going away. One report estimates that the total cost of cybercrime to the global economy is at least 1 trillion dollars annually. With this in ...</p>\n\n<a href=\"https://www.fool.com/investing/2022/01/12/is-zscaler-stock-a-buy-at-the-current-valuation/\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4548","symbol_name":"巴美列捷福持仓","start_time":0,"source_url":"https://www.fool.com/investing/2022/01/12/is-zscaler-stock-a-buy-at-the-current-valuation/","article_id":"2202301667","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2202301667","pubTimestamp":1642043419,"columns":[],"sourceInfo":{"source_id":"fool_stock","name":"Motley Fool"},"weMediaInfo":null,"summary":"Down more than 30% from its 52-week high, is this cybersecurity growth stock now a buy?","collect":0,"end_time":0,"defaultTopTitle":"fool.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4548":"巴美列捷福持仓","BK4551":"寇图资本持仓","NET":"Cloudflare, Inc.","CRWD":"CrowdStrike Holdings, Inc.","BK4097":"系统软件","BK4560":"网络安全概念","BK4116":"互联网服务与基础架构","BK4528":"SaaS概念","ZS":"Zscaler Inc.","BK4554":"元宇宙及AR概念","BK4532":"文艺复兴科技持仓"},"translate_title":"以目前的估值，Zscaler的股票是买进的吗？","themeId":"","isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"CRWD":1,"NET":1,"ZS":1},"content_text":"Cybersecurity threats are everywhere, and they aren't going away. One report estimates that the total cost of cybercrime to the global economy is at least 1 trillion dollars annually. With this in mind, companies need to increase their cybersecurity budgets and utilize the latest technology. The future of cybersecurity is in the cloud, and this is where Zscaler (NASDAQ:ZS) comes in.Zscaler stock was flying high in 2021, along with most of the growth sector, until it became clear that inflation is more than transitory and that interest rate hikes are coming sooner than expected. The stock has since fallen considerably and trades at more than 20% off its 52-week high.ZS data by YChartsInnovative technologyZscaler provides cloud-based security and is a leader in the Zero Trust Model. Zero Trust is essential in a world where many workers are logged in remotely, ransomware is rampant, and companies operate on hybrid cloud environments. Zscaler was named Gartner's only leader in Secure Web Gateways in 2020, and the company has 275 patents issued or pending. The company's software handles billions of daily incidents and serves a tremendous total addressable market of $72 billion.Tremendous growthZscaler is growing revenue at an incredible clip. Total revenue reached $673 million in fiscal 2021 and continued to accelerate into the first quarter of fiscal 2022. Fiscal 2021 revenue was 56% higher than fiscal 2020, while Q1 2022 came in 62% higher than the prior-year period.Data Source: Zscaler. Chart by author.The accelerating growth rate is highly encouraging and suggests that growth is sustainable. In addition, Zscaler receives about half of its revenue internationally. This is in stark contrast to a company like CrowdStrike (NASDAQ:CRWD) which received 73% of its total revenue from the U.S. for the quarter ended Oct. 31, 2021. Well-rounded sources of revenue spell less risk and more opportunities for growth.One of the reasons software-as-a-service (SaaS) companies are popular with investors is because of their tremendous gross margins, which point to a company's ability to scale to profitability. Zscaler is no exception. The company posted an 81% non-GAAP gross margin and a 78% GAAP gross margin for fiscal 2021. The company is not yet GAAP profitable, however, as it spends the majority of its revenue on sales and marketing. Cash flow was also encouraging in fiscal 2021 as Zscaler posted over $200 million in cash from operations, up from just $79 million in fiscal 2020.The valuation remains highZscaler's valuation has come down considerably in recent weeks yet remains relatively high. Comparing Zscaler to other high-growth SaaS companies like CrowdStrike and Cloudflare (NYSE:NET) shows that the entire sector is highly valued by investors yet retreating quickly.ZS PS Ratio (Forward) data by YChartsZscaler's forward price-to-sales (P/S) ratio of 38 is greater than CrowdStrike's but slightly less than that of up-and-coming content delivery network (CDN) specialist Cloudflare. One of the reasons that growth stocks are under selling pressure is the fear of faster-than-expected interest rate hikes. With inflation nearing 7%, the U.S. Federal Reserve will likely need to act soon by raising rates.Opportunity aheadCybersecurity is top of mind for business leaders around the world. The evolution of remote work has created an urgent need for Zero Trust solutions, and Zscaler has the technology to meet the needs of modern enterprises. The company is undergoing a period of tremendous, accelerating growth. Gross margins and cash flows indicate excellent ability to scale to profitability in the future. The macroeconomic conditions have caused a re rating in the growth sector, which does not appear to be finished just yet. With this in mind, Zscaler should be on investors' watch lists for now.","kind":"highlight","is_publish_news":true,"is_publish_highlight":true,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[{"id":9005035548,"gmtCreate":1642119253819,"gmtModify":1676533682845,"author":{"id":"4091168921173770","authorId":"4091168921173770","name":"KingKong87","avatar":"https://static.tigerbbs.com/596aa970d5d4665aa802d7868334fe8e","vip":1,"crmLevel":3,"crmLevelSwitch":1,"idStr":"4091168921173770","authorIdStr":"4091168921173770"},"htmlText":"[Smile]&nbsp;","listText":"[Smile]&nbsp;","text":"[Smile]","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9005035548","repostId":2202301667,"repostType":2,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9002541443,"gmtCreate":1642050168096,"gmtModify":1676533676127,"author":{"id":"3579641974902127","authorId":"3579641974902127","name":"ivy888","avatar":"https://static.tigerbbs.com/10358949b7fc96b011ec29ca7fd9c9a4","vip":1,"crmLevel":1,"crmLevelSwitch":0,"idStr":"3579641974902127","authorIdStr":"3579641974902127"},"htmlText":"Like","listText":"Like","text":"Like","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9002541443","repostId":2202301667,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9002528254,"gmtCreate":1642044855593,"gmtModify":1676533675641,"author":{"id":"4094698472251250","authorId":"4094698472251250","name":"Residue","avatar":"https://static.tigerbbs.com/3007355f2105f2f9a930d32ec14fc091","vip":1,"crmLevel":1,"crmLevelSwitch":0,"idStr":"4094698472251250","authorIdStr":"4094698472251250"},"htmlText":"🤩","listText":"🤩","text":"🤩","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9002528254","repostId":2202301667,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"}],"isCommentEnd":false,"newsSizeData":{"likeSize":107,"commentSize":3,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2202301667"}