Highlights

  • Zscaler Inc. (ZS) upgraded to Overweight by JPMorgan Chase & Co. this week
  • Stock outperformed NASDAQ-100 Index by 1.8% during latest trading session
  • Twenty-three of twenty-seven tracked analysts currently hold a positive rating on the stock

Zscaler Inc. (NASDAQ: ZS), a cybersecurity-focused technology firm, saw its stock edge up by 0.8% to USD307.31 following an analyst upgrade by JPMorgan Chase & Co. The investment bank raised its rating on the stock to Overweight, reflecting a shift in its assessment of the company’s current valuation and growth potential.

This development came on a day when the broader NASDAQ-100 Index dropped 1%, translating to a 218.5-point decline. In contrast, Zscaler’s modest gain resulted in a 1.8% relative outperformance versus the index — a notable divergence that often attracts investor attention.

Trading volume was close to average, with 2,698,701 shares exchanged, valued at approximately USD829.3 million. Over the past several months, Zscaler has become a frequent subject of analyst revisions. Since January 10, there have been 27 rating changes on the stock, of which 23 were upgrades — an unusually high ratio for a stock in the NASDAQ-100.

The stock is currently priced at a 62% premium compared to the lowest analyst target price, and at a 20% discount to the highest estimate, indicating a wide range of valuation perspectives. Despite a negative earnings-per-share of 39 cents for FY2024, the company maintains a market capitalization of approximately USD48 billion, with institutional investors holding about 47.1% of its outstanding shares.