Zscaler Inc. - cybersecurity firm (ZS) Message Board

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Technology Stocks : Zscaler Inc. - cybersecurity firm (ZS)

ZS 331.15

+2.8%

3:59 PM EDT

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From: Lynn	9/13/2018 5:53:12 PM
	of 17

Zscaler Inc (NASDAQ:ZS): Poised For Long-Term Success? Kari Hurd Simply Wall St. September 13, 2018 Zscaler Inc’s ( NASDAQ:ZS) latest earnings update in July 2018 showed company earnings became less negative compared to the previous year’s level – great news for investors Below, I’ve laid out key numbers on how market analysts predict Zscaler’s earnings growth outlook over the next couple of years and whether the future looks brighter. I will be looking at earnings excluding extraordinary items to exclude one-off activities to get a better understanding of the underlying drivers of earnings. Analysts’ expectations for next year seems pessimistic, with earnings becoming even more negative, reaching -US$44.8m in 2019. In addition, earnings are predicted to fall off in the following year, decreasing to -US$32.1m in 2020 and -US$18.4m in 2021. NasdaqGS:ZS Future Profit September 13th 18 While it’s useful to understand the growth year by year relative to today’s level, it may be more beneficial analyzing the rate at which the business is growing every year, on average. The advantage of this method is that it removes the impact of near term flucuations and accounts for the overarching direction of Zscaler’s earnings trajectory over time, which may be more relevant for long term investors. To compute this rate, I put a line of best fit through the forecasted earnings by market analysts. The slope of this line is the rate of earnings growth, which in this case is 20.4%. This means that, we can assume Zscaler will grow its earnings by 20.4% every year for the next few years. Next Steps:For Zscaler, I’ve put together three pertinent factors you should further research: Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk. Valuation: What is ZS worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether ZS is currently mispriced by the market. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of ZS? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing! https://finance.yahoo.com/news/zscaler-inc-nasdaq-zs-poised-153816501.html

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