ZS - Zscaler: Market Pessimism Won't Last Forever (Rating Upgrade)
2024-05-15 08:30:36 ET
Summary
- Zscaler investors have endured a stunning bear market over the past few months.
- Zscaler's zero-trust leadership remains intact as enterprises move toward the cloud.
- ZS stock was overvalued in February 2024. However, that over-optimism has dissipated.
- Zscaler needs to provide a more robust guidance to reignite its recovery.
- I explain why the market's pessimism has set up a solid buying opportunity heading to Zscaler's upcoming earnings release.
Zscaler Stock Fell Into A Bear Market
Zscaler, Inc. ( ZS ) investors have endured a battering since ZS stock failed to break above the $260 resistance zone in February 2024. Following the top, ZS fell more than 35% through its recent May 2024 lows, stunning cybersecurity investors. As a result, the market digested ZS's substantial growth premium, even as the proliferation in hybrid cloud momentum should drive a long-term recovery in ZS's buying sentiments....
Zscaler: Market Pessimism Won't Last Forever (Rating Upgrade)