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's Aroon Indicator triggered a bullish signal on June 09, 2023. Tickeron's A.I.dvisor detected that the AroonUp green line is above 70 while the AroonDown red line is below 30. When the up indicator moves above 70 and the down indicator remains below 30, it is a sign that the stock could be setting up for a bullish move. Traders may want to buy the stock or look to buy calls options. A.I.dvisor looked at 312 similar instances where the Aroon Indicator showed a similar pattern. In of the 312 cases, the stock moved higher in the days that followed. This puts the odds of a move higher at .
The Momentum Indicator moved above the 0 level on May 08, 2023. You may want to consider a long position or call options on ZS as a result. In of 71 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for ZS just turned positive on May 08, 2023. Looking at past instances where ZS's MACD turned positive, the stock continued to rise in of 50 cases over the following month. The odds of a continued upward trend are .
ZS moved above its 50-day moving average on May 08, 2023 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for ZS crossed bullishly above the 50-day moving average on May 16, 2023. This indicates that the trend has shifted higher and could be considered a buy signal. In of 12 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. 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 339 cases, the price rose further within the following month. The odds of a continued upward trend are .
The RSI Indicator has been in the overbought zone for 1 day. Expect a price pull-back in the near future.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 21 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
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 .
ZS broke above its upper Bollinger Band on June 02, 2023. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady 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 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 significantly 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 (36.101) is normal, around the industry mean (31.535). P/E Ratio (0.000) is within average values for comparable stocks, (167.703). Projected Growth (PEG Ratio) (1.558) is also within normal values, averaging (4.118). Dividend Yield (0.000) settles around the average of (0.068) among similar stocks. P/S Ratio (14.472) is also within normal values, averaging (77.847).
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 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.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
an antivirus & cloud security platform
A.I.dvisor indicates that over the last year, ZS has been closely correlated with CRWD. These tickers have moved in lockstep 78% of the time. This A.I.-generated data suggests there is a high statistical probability that if ZS jumps, then CRWD could also see price increases.