ZS - Zscaler: The Gift Of Market Volatility (Rating Upgrade)

2024-04-12 15:49:34 ET

Summary

• Zscaler, Inc., a leading cybersecurity stock, has recently underperformed the market by a wide margin.
• The company has sustained impressive top-line growth rates, expanding profit margins, and is moving closer to GAAP profitability.
• The company appears to be disrupting the traditional firewall model.
• I am upgrading Zscaler, Inc. stock to buy.

Sometimes the market gives you gifts in the form of volatility. That appears to be the case with Zscaler, Inc. ( ZS ), a leading cybersecurity stock which I previously noted risked flying too close to the sun. After a recent bout of underperformance, I find myself returning to the bullish camp....

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