The stock of Zscaler, Inc. (NASDAQ:ZS) is now priced at $159.36 and the shares are 16.02 points up or 11.18% higher compared to its previous closing price of $143.34. The stock had 4.525 million contracts set over the past session. ZS shares’ daily volume is compared to its average trading volume at 3.096 million shares. However, it has a float of 71.38 million and although its performance was 17.5% over the week, it’s one to watch. Analysts have given the ZS stock a yearly average price target of $113.3 per share. It means the stock’s downside potential is -28.9% with the ZS share price recently placing at $146.215 to $159.81. However, some brokerage firms have priced the stock below the average, including one that has called $73.
The shorts are climbing into the Zscaler, Inc. stock, with the latest data on short interest released on August 14, 2020, showing that short interest numbers in the ZS shares have risen. Short interest in the stock represents just 11.06% of its float, but the volume has raised by 41310. The volume of shorted shares rised to 7.895 million from 7.854 million shares over the last two weeks. The average intraday trading volume has been 1.772 million shares, which means that days to cover moved to roughly 4.455651.
In the last trading session, Zscaler, Inc. (NASDAQ:ZS) raised by $23.73 over the week and gained $26.87 on its 20-day. The stock’s high in the recent session is lower when compared to its 52-week high of $159.81. The stock recorded its established 52-week high on 09/01/20.
Since 03/12/20, the stock has traded to a low of $35 at 355.31%, an encouraging piece of data likely to interest most investors out to exploit the stock’s recent surge.
Looking at current readings, Zscaler, Inc.’s two-week RSI is 80.17. This suggests that the stock is oversold at the moment and that ZS shares’ price movement remains not stable. The stochastic readings are equally revealing at 92.52% meaning the ZS share price is currently in oversold territory.
The technical chart shows that the ZS stock will likely settle at between $164.04 and $168.72 per share. However, if the stock dips below $150.45, then its market would become much weaker. Any downside could see the stock price sliding to levels as low as $141.53.
Currently, the stock is trading in the green of MACD, with a reading of 7.32. Investors always pay attention to any move above or below the zero-line, mainly because the indicator points to the position of the stock’s short-term average relative to its long-term measure. A MACD -a reading above the zero line means that the short-term is above the long-term average. This scenario implies that there is an upward momentum. The opposite is true when the MACD falls below the zero-line.
Analysts at Maxim Group assigned ZS a rating of Buy in their intiating review released on August 21. Deutsche Bank analysts see the stock as a Buy with a target price of $171 in a flash note released to investors on August 20 initiating covering the stock. Citigroup seeing the improvements upgraded the stock from Neutral to Buy on July 09, placing it at $152.
The average rating for the ZS equity is 2.25 and is currently gathering a bullish momentum. Of 25 analysts tracking Zscaler, Inc. polled by Reuters, 12 rated ZS as a hold. The remaining 13 analysts were split evenly. However, the split wasn’t equal as a majority (13) rated it as a buy or strong buy. 0 analyst advised investors against buying the stock or to sell if they own any of the stock.
Elsewhere, the ZS stock price is 551.42X ahead of its 12-month Consensus earnings per share estimates. The stocks P/S ratio currently stands below the group’s average of 40.9. Zscaler, Inc. has its P/E ratio at 62.1, which means that the stock is currently trading at a premium relative to the 13.6 industry average.
Zacks Consensus Estimate forecasts that the current-quarter revenues for Zscaler, Inc. (NASDAQ:ZS) will decrease by about -99.89%, which will see them reach $119 million. The company’s full-year revenues are, however, expected to increase by about 39.95%, up from $303 million to $424 million. ZS’s expected adjusted earnings should drop almost -57.14% to end up at $0.03 per share, while for the fiscal year, analysts project the company’s earnings to drop by about -4.55% to record $0.21/share.