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39

ZS

💻 Technology

Zscaler, Inc.

Conservative #889Aggressive #183Moderate RiskLow 29ML↑ 36pt
$155.70+4.24%
Day High$155.77
Day Low$147.17
Volume3.3M
Mkt Cap$24.8B
52W Low $14752W High $337
Market Cap
$28.3B
P/E Ratio
39.6
Sector avg: 87.8
Rev Growth
23.3%
Sector avg: 14.8%
Earnings Growth
28.1%
Profit Margin
-1.6%
Sector avg: -110.0%
Debt/Equity
1.00

Why This Score

ZS scores 38.7 on the Conservative profile, blending a fundamental score (80% weight, emphasizing quality and stability (84% of fundamental weight)) with a machine-learning signal (20% weight) trained on 82 features across 30 years of data.

Risk Factors
  • Signal divergence: Fundamental and ML signals disagree by a significant margin, reducing confidence.
  • Above-average volatility (13.1%) may not suit conservative risk tolerance.

Moderate penalties (-6.8 points) reflect identified risk factors. The overall score balances these against the stock's fundamental strengths.

Score Breakdown

Overall Score38.7
Fundamental Score29.4
ML Score90.0

Score by Horizon

3 Month
70.2
6 Month
78.4
Primary
1 Year
82.5

Quality Assessment

A
Earnings Grade
Strong fundamentals, high earnings quality

Position Sizing

Suggested Allocation
5%
Confidence
high

Score Composition Waterfall

How each component affects the final score
Backtested Scoring Levers (IC-calibrated from 30y ElasticNet)
Weinstein (12.1%)
50
Basing
Sentiment (2.5%)
35
Negative
Analyst (6.4%)
50
Neutral
Tradability (post-hoc)
98
Grade A
Base
41.5
SHAP
+2.2
Factors
+1.8
Divergence
-6.8
Final
38.7
Positive adjustment
Negative adjustment
Base blend
Final score

Factor Breakdown

55AVG
Value55
Quality40
Growth90
Stability60
Investment30

Signal SegmentsComputed from ML features

Fundamental (Valuation, Quality, Growth)47.0
Technical (Momentum, Weinstein, Volatility)37.0
External (Sentiment, Analyst, Macro)59.0
Scores below 50 indicate weakness in that segment relative to the universe.

Data Quality

Score
Features
Confidence
Feature Coverage96%

Growth Estimates

Short-term
+1.4% to +6.0%
Medium-term
+2.8% to +9.8%
Long-term
+4.1% to +13.6%

ML Model Core Features100 trained inputs → ML Score: 90

These features are direct inputs to the machine learning model. The model was trained on these signals alongside 100 features (including 12 momentum/technical indicators) to produce the ML percentile score.

Analyst Intelligence
Consensus Score50.0/100
Target Upside+0.0%
Coverage0 analysts
Market Sentiment
Sentiment Score35.2/100
News Volume1 articles
Technical Stage
Weinstein Stage1 — Basing
12M Momentum-0.1%
6M Momentum-0.4%
Volatility+0.1%
Momentum & Technical
Momentum Acceleration+26.4%
Momentum ConsistencyWeak (0.26)
Relative Strength vs Sector-13.0%
Trend Strength (ADX Proxy)Weak (0.7)
Momentum Quality-0.051
Momentum BreadthNarrow
Macro Regime
Bull RegimeYes
High Vol RegimeNo
S&P 500 Return+25.0%
Yield Curve-0.1bp

Sector-Relative AnalysisIn-model features

Value Trap Signal
4%
Low risk
Sector RevGr Rank
P78
Revenue growth vs Technology peers
Sector PE Rank
P32
Valuation vs Technology peers
Sector FCF Rank
P52
Free cash flow vs Technology peers
Growth Deviation
+0.3σ
Z-score vs sector median
Stagnation Flag
NO
Not flagged

Analysis Signals

Scoring Factors
Fundamental score of 47 relative to sector peers47/100
Machine learning model ranks this stock at the 83th percentileP83
ML model weight reduced to 9% due to macro conditions: market in extended rally phase; yield curve inverted (recession indicator); late-cycle economic indicators detected9% ML weight
SHAP feature alignment: +2.4pt (features align with model priorities)—
Blend: 91% fund (47.2) + 9% ML (82.8) + SHAP(+2.4) = 52.8—
Factor quality: +2.0pt (multi-factor composite)—
Risk assessment: moderate. Annualized volatility 13.1%. Max drawdown 46% (-12.0 pts). Price momentum -9% (-0.9 pts)Moderate
Market cap adjustment: +2.0 points ($28.3B market cap)+2.0 pts
Conviction penalty: -2.0pt (conviction=29)—
Divergence penalty: -3.9pt (ML 36pt higher)—
Risk Factors

No risk factors identified.

Sector Peer Comparison(Technology — Rank #195 of 289 stocks)

StockScoreP/ERev GrowthMarginMkt Cap
ZS38.739.623.3%-1.6%$28.3B
MPWR84.891.721.2%81.0%$57.1B
ZM84.218.03.1%21.7%$27.7B
NVDA80.645.2114.2%55.8%$4.5T
CRUS79.719.16.0%17.5%$7.4B
ASML77.848.115.6%29.4%$546.0B
IDCC77.431.8-4.0%48.8%$9.7B
CSCO77.127.65.3%18.0%$303.6B
RMBS75.548.320.7%32.3%$11.0B
DBX75.313.91.9%17.7%$6.4B
FSLR75.017.326.7%30.7%$24.2B
SIMO74.79.210.2%13.8%$4.5B
ADI74.374.116.9%20.6%$165.1B
AAPL72.533.16.4%27.0%$3.9T
OLED72.527.012.4%34.3%$5.9B
AMAT72.336.44.4%24.7%$281.7B
Sector Average47.487.814.8%-110.0%—

Market Sentimentvia FMP

Analyst Consensus
Buy52 analysts
Buy: 42Hold: 9Sell: 1
Price Target
$289consensus
Low $209Median $308High $360
+85.5% to consensus target

Company Overviewvia FMP

Zscaler, Inc. operates as a cloud security company worldwide. The company provides Zscaler Internet Access solution that provides users, servers, operational technology, Internet of Things device secure access to externally managed applications, including software-as-a-service (SaaS) applications and Internet destinations; and Zscaler Private Access solution, which is designed to provide access to managed applications hosted internally in data centers, and private or public clouds. It also offers Zscaler Digital Experience that measures end-to-end user experience across business applications, as well as provides an easy to understand digital experience score for each user, application, and location within an enterprise. In addition, the company provides workload segmentation solutions comprising Zscaler Cloud Security Posture Management that identifies and remediates application misconfigurations in SaaS, infrastructure as a service, and platform as a service to reduce risk and ensure compliance with industry and organizational benchmarks; and Zscaler Cloud Workload Segmentation, which is designed to secure application-to-application communications inside public clouds and data centers to stop lateral threat movement, as well as prevents application compromise and reduces the risk of data breaches. Its platform modules include Zscaler Central Authority, Zscaler Enforcement Node, and Zscaler Log Servers. It serves customers in airlines and transportation, conglomerates, consumer goods and retail, financial services, healthcare, manufacturing, media and communications, public sector and education, technology, and telecommunications services industries. The company was formerly known as SafeChannel, Inc., and changed its name to Zscaler, Inc. in August 2008. Zscaler, Inc. was incorporated in 2007 and is headquartered in San Jose, California.

CEO
Jagtar Singh Chaudhry
Employees
7,348
Beta
1.02
Industry
Software - Infrastructure
FMP-Identified Peers

Technical Picturecomputed from daily prices

RSI (14)
31.8
Neutral
Trend
Bearish
10-day vs 50-day MA
From 52W High
-53.8%
High: $336.99
From 52W Low
+10%
Low: $141.56
Moving Averages
10-Day
$164.10
Below
20-Day
$175.60
Below
50-Day
$203.50
Below
200-Day
$266.70
Below
60-Day Support
$141.56
60-Day Resistance
$256.33
Weinstein Stage Analysisbased on 200-day SMA framework
Stage 1 — BasingScore: 21/100

Stock is building a base after a decline. The 200-day moving average is flattening. Watch for a breakout above the 200-day SMA on increased volume.

Monitor for breakout above 200-day SMA on volume
Price vs 200 SMA
-41.6%
200 SMA Slope (60d)
+0.59%
Flattening
Volume Ratio
1.51x
10d avg vs 50d avg
Days in Stage
61
Confidence: 70%
Recent Gap Down

Financial Statementslast 4 quarters via FMP

MetricQ1 2025Q4 2025Q3 2025Q2 2025
Revenue$788M$719M$678M$648M
Gross Profit$603M$548M$522M$499M
Operating Income$-36M$-32M$-22M$-37M
Net Income$-12M$-18M$-4M$-8M
EPS (Diluted)$-0.07$-0.11$-0.03$-0.05
Gross Margin76.6%76.1%77.0%77.1%
Operating Margin-4.6%-4.5%-3.3%-5.7%
Net Margin-1.5%-2.4%-0.6%-1.2%

Why This Stock

TechnologyRevenue growth 23.3%

Tradability FilterGrade A — 98/100Score impact: -19.6pt

Volume
100
2.2M avg/day
Dollar Vol
100
$314M/day
Float
100
103M shares
Mkt Cap
86
$28.3B
Range
100
138% spread
Composite Liquidity Score98/100
FDCBA

Growth Projection Adjustment

0.7x dampening
weinstein basing

Growth estimates have been dampened based on technical and fundamental signals. This is a post-hoc adjustment to prevent overly optimistic projections for stocks showing declining momentum or deteriorating fundamentals.

Free Float
64.5%
Outstanding Shares
159M
Bid-Ask Spread
138.0%
Institutional Tradable
Yes

Scores are generated by a multi-stage ML pipeline combining fundamental analysis, ensemble predictions, and structural risk signals. All data is for research purposes only and does not constitute financial advice. Past performance does not guarantee future results.