Zscaler (ZS, $113.02) was the month's biggest loser, descending -14.61%
Zscaler Inc. (ZS) is a cloud-based cybersecurity company that offers a range of services, including web and email security, data protection, and application delivery. Despite the company's strong fundamentals and market positioning, ZS experienced a significant decline in February 2023, becoming the month's biggest loser.
The stock's price dropped -14.61% to $113.02 per share, which is a substantial decline for a single month. Furthermore, among the 940 stocks analyzed in the Packaged Software Industry during that period, 617 of them (65.63%) were in a downtrend, suggesting that ZS was not alone in experiencing market headwinds.
Adding to the negative sentiment was the Momentum Indicator, which turned negative on February 16, 2023. The Momentum Indicator measures the rate of change of a stock's price and can signal a change in trend. When it moves below the 0 level, it indicates that the stock could be shifting to a new downward trend.
Tickeron's A.I.dvisor, an artificial intelligence tool for technical analysis, looked at 76 similar instances where the Momentum Indicator turned negative for ZS. It found that in 59 of these cases, the stock moved further down in the following days. This means that the odds of a decline for ZS were at 78%, suggesting that the stock's downward trend may continue.
Zscaler's recent decline and negative Momentum Indicator signal suggest that the stock may be entering a new downward trend.
ZS in upward trend: price expected to rise as it breaks its lower Bollinger Band on February 25, 2025
ZS may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In of 40 cases where ZS's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 52 cases where ZS's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where ZS advanced for three days, in of 353 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 277 cases where ZS Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The 10-day RSI Indicator for ZS moved out of overbought territory on February 19, 2025. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 50 similar instances where the indicator moved out of overbought territory. In of the 50 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Momentum Indicator moved below the 0 level on March 10, 2025. You may want to consider selling the stock, shorting the stock, or exploring put options on ZS as a result. In of 73 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for ZS turned negative on February 21, 2025. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 49 similar instances when the indicator turned negative. In of the 49 cases the stock turned lower in the days that followed. This puts the odds of success at .
ZS moved below its 50-day moving average on March 10, 2025 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for ZS crossed bearishly below the 50-day moving average on March 10, 2025. This indicates that the trend has shifted lower and could be considered a sell signal. In of 13 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where ZS declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 89, placing this stock slightly better than average.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (30.030) is normal, around the industry mean (31.181). P/E Ratio (0.000) is within average values for comparable stocks, (162.153). Projected Growth (PEG Ratio) (1.013) is also within normal values, averaging (2.763). Dividend Yield (0.000) settles around the average of (0.032) among similar stocks. P/S Ratio (14.903) is also within normal values, averaging (59.007).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating slightly worse than average price growth. ZS’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
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General Information
an antivirus & cloud security platform
Industry PackagedSoftware