Zscaler (ZS) closed at $222.89 in the latest trading session, marking a -0.09% move from the prior day. This change lagged the S&P 500's daily gain of 0.17%. Elsewhere, the Dow lost 0.02%, while the tech-heavy Nasdaq added 0.38%.

Heading into today, shares of the cloud-based information security provider had gained 7.73% over the past month, lagging the Computer and Technology sector's gain of 8.01% and outpacing the S&P 500's gain of 2.33% in that time.

Wall Street will be looking for positivity from ZS as it approaches its next earnings report date. This is expected to be February 25, 2021. On that day, ZS is projected to report earnings of $0.08 per share, which would represent a year-over-year decline of 11.11%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $147.34 million, up 45.49% from the year-ago period.

ZS's full-year Zacks Consensus Estimates are calling for earnings of $0.38 per share and revenue of $611.78 million. These results would represent year-over-year changes of +58.33% and +41.86%, respectively.

Investors should also note any recent changes to analyst estimates for ZS. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. ZS currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, ZS is holding a Forward P/E ratio of 580.96. Its industry sports an average Forward P/E of 36.3, so we one might conclude that ZS is trading at a premium comparatively.

The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 116, putting it in the top 46% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

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