ZS - Zscaler Is Fully Valued Take Profits Here (Rating Downgrade)

2024-02-03 11:10:38 ET

Summary

• Zscaler's stock has seen significant gains, but it may be overvalued at its current price.
• The company's growth rates are expected to decelerate, which could impact its valuation.
• Its billings guidance indicates conservatism for the back half of FY24, in the wake of a still-challenging macro environment.

Though many tech stocks have lost their luster in the wake of the post-pandemic era, Zscaler ( ZS ) has long remained a Wall Street favorite. This cybersecurity company - one of the leading vendors that secures cloud-based applications from cyber threats - has seen its share price surge nearly double over the past year, and in the year to date, Zscaler is up 15% already. ...

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