Zscaler
ZS
Earnings Preview
The company is expected to report a gain of $0.49/share on $$430.38 million in revenue. Meanwhile, the so-called Whisper number is a gain of $0.52/share. The Whisper number is the Street’s unofficial view on earnings.
A Closer Look At The Fundamentals
The company is a leader in the cyber security space. The company’s earnings are expected to grow by 137% in 2023 compared to 2022 and then by another 29% in 2024 vs. 2023! That is very strong growth especially in this environment. The company’s market cap is $23 billion and if it can continue to grow at the rate it is expected to grow the stock price can easily go higher. The company earned $0.30 a share in 2020 and is expected to earn $2.10 a share in 2024! That’s very impressive growth.
A Closer Look At The Technicals
Technically, the stock is recovering from a very steep bear market for most of 2022 and early 2023. The stock bottomed in May 2023 near $84 a share and it is currently trading near $160/share! That’s big move in the last few months. The bulls want to see the stock breakout and rally after reporting earnings and the bears want to see it gap down. Other stocks in this group have rallied after reporting earnings recently which suggests this stock can easily gap up and rally too.
Pay Attention To How The Stock Reacts To The News
From where I sit, the most important trait I look for during earnings season is how the market and a specific company reacts to the news. Remember, always keep your losses small and never argue with the tape.
Disclaimer: The stock has been featured in my FindLeadingStocks.com report.
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