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Zscaler - AI Stock Analysis

Analysis generated March 2, 2025

Zscaler, Inc. is a leader in cloud security, offering a comprehensive platform that provides secure access to the internet and private applications. The company operates globally and serves enterprises, government agencies, and service providers. Zscaler leverages cloud-native architecture to deliver fast and cost-effective solutions, gaining traction as organizations increasingly adopt cloud-based environments.

Fundamental Analysis

Revenue for the last quarter was $628M, reflecting a 5.92% increase compared to the previous quarter and a significant 26.42% increase year-over-year. This continuous revenue growth signals strong demand for Zscaler’s services.

Net income stood at $12M, a 19.00% increase from the last quarter and an impressive 64.01% rise year-over-year, suggesting improvements in efficiency and profitability.

EBITDA for the last quarter was $1.2M, marking a dramatic increase of 128.06% from the previous quarter and 106.37% year-over-year. This robust growth highlights enhanced operational performance.

However, a point of concern is the insider activity, with some company insiders selling their stock recently. While this could be a bearish signal, it does not necessarily indicate underlying issues within the company.

Technical Analysis

Today’s stock price is $196.23, which is a 3.14% decrease from a month ago and a 10.49% decrease year-over-year. This downward movement may raise concerns about long-term performance.

The stock is exhibiting a bearish trend, with the current SMA10 at 196.23, lower than the previous SMA10 of 197.31. This suggests a potential downward trend.

However, the RSI is 8.9, indicating that the stock is potentially oversold, which could present a buying opportunity if the stock rebounds.

Alternative Data Analysis

Zscaler has 127 open positions according to top job boards. This number is up by 13% in recent months, indicating growth and expansion, a healthy sign of company ambition and capacity.

Employee sentiment is neutral, suggesting neither strong optimism nor pessimism about the company's future among staff.

With 2.8M visitors to their website and 16,000 followers on Twitter with steady engagement levels, Zscaler shows consistent customer interest.

The AltIndex AI score, which assesses the stock using various data points, assigns Zscaler a score of 64, indicating a buy signal.

Conclusion

In summary, Zscaler demonstrates strong fundamental performance with consistent revenue, net income, and EBITDA growth. However, recent insider selling and a bearish technical trend may raise concerns. Alternative data metrics suggest company growth and stable customer engagement. Given these mixed indicators, a cautious yet optimistic approach may be suitable for investing in Zscaler.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.