Down 60%, Zscaler Is Finally A Buy

Jun. 19, 2022 9:28 AM ETZscaler, Inc. (ZS) StockZS23 Comments

Summary

  • Zscaler is now down over 60% from all time highs.
  • Cybersecurity stocks previously maintained rich multiples even while tech peers crashed. That has now changed.
  • Zscaler has generated resilient growth rates at high octane levels.
  • The stock is priced for strong returns over the next few years.
  • Looking for a portfolio of ideas like this one? Members of Best Of Breed get exclusive access to our model portfolio. Learn More »

Digitally enhanced shot of computer code superimposed over an unrecognizable man in a hoodie

shapecharge/E+ via Getty Images

Even the best can fall. Zscaler (NASDAQ:ZS), a top tier operator in cybersecurity, has high quality fundamentals in a high quality sector. Its main issue has been valuation and for many months, it appeared that its premium

Buy More Ideas Like Zscaler

Growth stocks have crashed. The time to buy is when there is blood on the streets, when no one else wants to buy.

My portfolio includes my highest conviction ideas.

Get access to Exclusive reports:

  • My top picks in the beaten down tech sector.
  • My investing strategy for the current market.
  • My thesis on why cannabis stocks are a generational secular growth story.
  • and much more

Elevate your returns with High Conviction Ideas today!

This article was written by

35.1K Followers

Julian Lin is a financial analyst. He finds undervalued companies with secular growth that appreciate over time. His approach is to look for companies with strong balance sheets and management teams in sectors with long growth runways.

Julian is the leader of the investing group Best Of Breed Growth Stocks where he only shares positions in stocks which have a large probability of delivering large alpha relative to the S&P 500. He also combines growth-oriented principles with strict valuation hurdles to add an additional layer to the conventional margin of safety. Features include: exclusive access to Julian's highest conviction picks, full stock research reports, real-time trade alerts, macro market analysis, individual industry reports, a filtered watchlist, and community chat with access to Julian 24/7. Learn more.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of OKTA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

I am the holdings of the Best of Breed portfolio.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

About ZS Stock

SymbolLast Price% Chg
Market Cap
PE
Yield
Rev Growth (YoY)
Short Interest
Prev. Close
Compare to Peers

More on ZS

Related Stocks

SymbolLast Price% Chg
ZS
--