Zscaler: Finally Looks Cheap But Will Likely Disappoint On Guidance

Apr. 28, 2023 7:00 AM ETZscaler, Inc. (ZS) StockZS10 Comments

Summary

  • Zscaler is a cash-flowing operator in cybersecurity.
  • The company is finally seeing the impact from the macro environment.
  • The company has a net cash balance sheet and boasts 20+% cash flow margins.
  • With guidance set conservatively, ZS stock is looking highly buyable.
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Multi-Factor Authentication, User, Login, Cybersecurity privacy protect data. internet network security technology. Encrypted data. Personal online privacy. Cyber hacker threat.

tsingha25

While many other tech stocks are recouping some losses in the past quarter, Zscaler (NASDAQ:ZS) continues to see its stock languish. Much of that may be due to valuation, as ZS continues to trade at a relative premium to peers

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This article was written by

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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 ZS 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.

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