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.
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
ZS's RSI Oscillator recovers from overbought zone
The 10-day RSI Oscillator for ZS moved out of overbought territory on September 25, 2026. This could be a sign that the stock is shifting from an upward trend to a downward trend. Traders may want to look at selling the stock or buying put options. Tickeron's A.I.dvisor looked at 36 instances where the indicator moved out of the overbought zone. In 29 of the 36 cases the stock moved lower in the days that followed. This puts the odds of a move down at 81%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In 37 of 50 cases where ZS's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are 74%.
The Momentum Indicator moved below the 0 level on October 02, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on ZS as a result. In 60 of 79 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 76%.
The Moving Average Convergence Divergence Histogram (MACD) for ZS turned negative on September 30, 2026. 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 46 similar instances when the indicator turned negative. In 35 of the 46 cases the stock turned lower in the days that followed. This puts the odds of success at 76%.
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 50 of 62 cases within the following month. The odds of a continued downward trend are 81%.
Bullish Trend Analysis
The 50-day moving average for ZS moved above the 200-day moving average on September 21, 2026. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
Following a +2.12% 3-day Advance, the price is estimated to grow further. Considering data from situations where ZS advanced for three days, in 264 of 349 cases, the price rose further within the following month. The odds of a continued upward trend are 76%.
Fundamental Analysis (Ratings)
The Tickeron Price Growth Rating for this company is 39 (best 1 - 100 worst), indicating steady price growth. ZS’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of 63 (best 1 - 100 worst) indicates that the company is fair valued 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 (12.516) is normal, around the industry mean (18.522). P/E Ratio (0.000) is within average values for comparable stocks, (158.311). Projected Growth (PEG Ratio) (2.043) is also within normal values, averaging (3.648). Dividend Yield (0.000) settles around the average of (0.004) among similar stocks. P/S Ratio (9.158) is also within normal values, averaging (104.490).
The Tickeron SMR rating for this company is 91 (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 100 (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 Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. ZS’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 91, placing this stock worse than average.
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General Information
an antivirus & cloud security platform
Industry ComputerCommunications
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