What changed
$ZS — WATCHLIST 📊 | 6 MONTHS THESIS
🧭 Conviction: HIGH
Zscaler, Inc. operates as a cloud security company worldwide.
🎯 FQ3 FY2026 (ends Apr) | reported May 26 | Rev $850M | EPS $1.08 vs $1.01 🟢 | Margin -3.5%
💡 The market rewarded the beat but has not seen upward revisions; consensus may be anchoring on past deceleration, creating a potential catalyst if growth re-accelerates, but that gap is unconfirmed.
🏢 Business Quality: 7/10
📊 Valuation: Fair to rich — trailing P/E 34.5x, FCF yield 2.4%, EV/Revenue likely >7x; requires sustained >25% revenue growth with improving margins to justify;...
🔮 Catalyst: FQ4 FY2026 earnings (Jul quarter) report
⚖️ watchlist — Zscaler post-earnings beat leaves clues but no clear entry; await FQ4 in late August to assess re-acceleration before sizing a long.
📊 Our read: WATCHLIST. Full analysis →
https://stockduty.xyz/s/ZS0701
Also in play: $NVDA $AAPL $MSFT $AVGO $MU