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ZSZscaler, Inc.Sell5.7·$124.01-0.58%
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Zscaler, Inc. (ZS) Stock Analysis

Falling Knife setup

SellVALUE-TRAP 1/5Moderate Confidence

Technology · Software - Infrastructure

Sell if holding. Momentum 1.1/10 is below the 5.0 floor at $124.01 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: V7 low-quality RISK_OFF penalty: -0.5 (Q=5.2); Sector modifier (Technology): -0.8.

Zscaler provides a cloud-native Zero Trust security platform (Zero Trust Exchange) distributed across 160+ public exchanges globally, serving 9,400+ customers in 185+ countries including ~40% of the Forbes Global 2000. Revenue grew to $2,673M in fiscal 2025 (23% YoY), all from... Read more

$124.01+43.6% A.UpsideScore 5.7/10#33 of 77 Software - Infrastructure
QualityF-score8 / 9FCF yield5.50%
Stop $116.30Target $178.28(analyst − 8%)A.R:R 2.9:1
Analyst target$193.79+56.3%45 analysts
$178.28our TP
$124.01price
$193.79mean
$250

Sell if holding. Momentum 1.1/10 is below the 5.0 floor at $124.01 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: V7 low-quality RISK_OFF penalty: -0.5 (Q=5.2); Sector modifier (Technology): -0.8. Chart setup: Death cross, below all MAs, RSI 33, MACD bearish. Score 5.7/10, moderate confidence.

Passes 7/10 gates (favorable risk/reward ratio, clean insider activity, news boost analyst 0.70, news boost analyst cluster(3), earnings proximity 83d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and death cross (50MA < 200MA). Suitability: moderate.

news + 30-day 8-K events · 5-min refresh

Recent developments

updated 2026-06-11
TrendMatrix Research · upcoming catalyst calendar

Upcoming dated catalysts

Wed, Sep 2, 202683d to earnings· next earnings call

Thesis

Rewards
Strong earnings beat streak (4/4)
Strong growth profile
Analyst upside: 44%
Risks
V7 low-quality RISK_OFF penalty: -0.5 (Q=5.2)
Sector modifier (Technology): -0.8
Negative momentum

Key Metrics

P/E (TTM)
P/E (Fwd)27.1
Mkt Cap$20.2B
EV/EBITDA-304.3
Profit Mgn-2.4%
ROE-3.7%
Rev Growth25.4%
Beta0.96
DividendNone
Rating analysts58

Quality Signals

Piotroski F8/9MoatNarrow

Options Flow

P/C1.20bearish
IV68%elevated
Max Pain$70-43.6% vs spot

Concentration Risks(10-K Item 1A)

  • MEDIUMCustomertop five channel partners28%
    10-K Item 1A: 'sales through our top five channel partners and their affiliates, in aggregate, represented 28% of our revenue for fiscal 2025'

Material Events(8-K, last 90d)

  • 2026-04-16Item 5.02MEDIUM
    Raj Judge, EVP Corporate Strategy, resigned as officer effective April 15, 2026; departure effective July 31, 2026. Also resigned from Board effective April 15, 2026. Board resignation not due to any disagreement. No successor named.
    SEC filing →

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.

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Performance. Past performance is not indicative of future results. Performance figures reflect the published model only and do not reflect any individual subscriber's actual results.

Methodology · Editorial policy & full disclaimer

Rating Breakdown

2 floor-breakers·1 ceiling hit

Price action weak — below key moving averages, no momentum carry. Needs a base before trend-continuation setups apply.static

Macd
0.0
Volume
0.0
Obv
1.0
Ma Position
1.0
Rsi
3.5
Volume distribution (falling OBV)Below 200-MA, MA slope -8.5%/30d — confirmed downtrend

Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static

Quality Rank
1.3
Value Rank
3.2
Growth Rank
6.6
GatesMomentum 1.1<4.5Death cross (50MA < 200MA)Executive change: officer departure/appointmentA.R:R 2.9 ≥ 1.5Insider activity: OKNEWS BOOST ANALYST 0.70NEWS BOOST ANALYST CLUSTER(3)EARNINGS PROXIMITY 83d clearSEMI CYCLE PEAK CLEARMATERIALS CYCLE PEAK CLEARFalling KnifeSuitability: Moderate
RSI
33 · Neutral
20D MA 50D MA 200D MADEATH CROSSSupport $119.90Resistance $191.25

Price Targets

$116
$178
A.Upside+43.8%
A.R:R2.9:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeRisk-Off

Risk Alerts

! momentum at 1.1 (below the engine's 4.5 threshold)
! Death cross — 50-day MA below 200-day MA

Earnings

B
B
B
B
4/4 beats
Next Earnings2026-09-02 (83d)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is ZS stock a buy right now?

Sell if holding. Momentum 1.1/10 is below the 5.0 floor at $124.01 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: V7 low-quality RISK_OFF penalty: -0.5 (Q=5.2); Sector modifier (Technology): -0.8. Chart setup: Death cross, below all MAs, RSI 33, MACD bearish. Prior stop was $116.30. Score 5.7/10, moderate confidence.

What is the ZS stock price target?

Take-profit target: $178.28 (+43.6% upside). Prior stop was $116.30. Stop-loss: $116.30.

What are the risks of investing in ZS?

V7 low-quality RISK_OFF penalty: -0.5 (Q=5.2); Sector modifier (Technology): -0.8; Negative momentum.

Is ZS overvalued or undervalued?

Zscaler, Inc. trades at a P/E of N/A (forward 27.1). TrendMatrix value score: 6.2/10. Verdict: Sell.

What do analysts say about ZS?

58 analysts cover ZS with a consensus score of 4.0/5. Average price target: $194.

What does Zscaler, Inc. do?Zscaler provides a cloud-native Zero Trust security platform (Zero Trust Exchange) distributed across 160+ public...

Zscaler provides a cloud-native Zero Trust security platform (Zero Trust Exchange) distributed across 160+ public exchanges globally, serving 9,400+ customers in 185+ countries including ~40% of the Forbes Global 2000. Revenue grew to $2,673M in fiscal 2025 (23% YoY), all from subscriptions sold primarily through channel partners.

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