What changed
$ZS — BUY 📊
Zscaler, Inc. operates as a cloud security company worldwide.
🎯 Q2 2026 | Rev $1B | EPS $1.08 vs $1.01 🟢
💡 Consensus sees high-teens revenue growth and gradual margin improvement. Our variant view is that new zero-trust platform adoption and larger multi-year contracts will push revenue growth above 25% and expand operating margins faster than expected, leading to forward EPS of $5.50+ (vs street $5.00).
📉 Reward/Risk: 2.07:1
🏢 Business Quality: 8/10 - Mission-critical zero-trust platform with sticky recurring revenue, high switching costs, and expanding enterprise footprint, tempered by competitive landscape.
📊 Valuation: rich — trading at 29x P/S and ~28x forward P/E, above 5-year median; but fair on EV/revenue to growth if revenue accelerates to 25%+.
🔮 Catalyst: Q3 FY2026 earnings beat and raised FY26 guidance
📊 Our read: BUY. Full analysis →
https://stockduty.xyz/s/ZS0623