Zscaler, Inc. ZS
Promising (early) Cybersecurity sector · Zero-trust security delivered from the cloud — replaces legacy VPNs and firewalls.
🗓 Reports earnings in 49 days (2026-11-24) — calendar context, not a prediction.
Zscaler, Inc. (ZS) is a Cybersecurity company, graded Promising (early) on FrontierLab's evidence-based quality rubric (data as of 2026-10-05). Revenue grew 25.4% year-over-year at a 76.8% gross margin. Gross-profits-to-assets is 0.33; Rule of 40 is 21.4. Net share issuance 2.4% YoY (modest issuance). 2 risk flags are noted below. Analyst mix: 45 buy / 12 hold / 0 sell. Track record: 27% of Early-stage-graded names beat the S&P over 63 sessions (95% CI 15–44%, N=33). Median excess vs the S&P was -14.6%.
These sentences are generated from the day's data by deterministic templates.
Key quality signals
| Revenue growth (YoY) | 25.4% |
|---|---|
| Gross margin | 76.8% |
| Gross profits / assets | 0.33 |
| Rule of 40 | 21.4 |
| Net margin | -4% |
| Cash runway (months) | — |
| PEG | — |
| Price / sales | 9.5 |
Quality checklist
Each line is one quality test behind the grade — ✓ passed · ~ borderline · ✗ failed. Hover a metric in the tables below for what it means.
- ✓ Revenue growth — 25.4% (pass ≥ 20%)
- ✓ Capital efficiency
- ✓ Gross margin — 76.8% (pass ≥ 72% · Cybersecurity)
- ~ Gross-margin trend — -0.1 (pass ≥ 2)
- ✓ Share dilution — 2.4%
- ~ Competitive moat — Narrow
- ✓ Market size (TAM) — Large
Grade history
Graded Promising (early) since 2026-06-10 — no grade changes recorded yet.
How have Early-stage-graded names performed?
The forward returns of all Early-stage-graded names since each grade was recorded — the bucket this name currently sits in, not a forecast of this individual stock.
| Window | Forward record vs the S&P | Median |
|---|---|---|
| ~1 month | 45% of Early-stage-graded names beat the S&P over 21 sessions (95% CI 29–62%, N=31). | Median excess vs the S&P was -3.2%. |
| ~3 months | 27% of Early-stage-graded names beat the S&P over 63 sessions (95% CI 15–44%, N=33). | Median excess vs the S&P was -14.6%. |
| ~6 months | building — 46 more sessions needed | |
How have this name's flags scored?
| Flag | N | Mean excess vs S&P |
|---|---|---|
| Burning cash — operating margin is negative. | 36 | -6.5% |
| Parabolic one-day spike (+17%) in the last month — extreme single-day moves tend to mean-revert. | sample still too small to report (need ≥ 8) | |
These per-flag figures are observational — a flag firing is not a randomized assignment, so any edge can reflect what kind of names trip a flag, not the flag itself. Descriptive, not causal.
Scope: these are forward returns vs the S&P among names still covered at each horizon's end, within the curated universe — not a survivorship-clean whole-market backtest. Names later dropped from coverage are counted as attrition (not hidden), and single-session moves beyond ±300% are treated as split/data artifacts and excluded. How this is measured → · Full track record →
How it compares
Coarse same-sector, same-stage context — not a percentile or rank. GP/A is graded on its absolute level, not position.
Fundamentals
| Market cap | $31.79B |
|---|---|
| Stage | Early |
| Share issuance (YoY) | 2.4% · modest issuance |
| Moat | Narrow |
| TAM | LARGE |
| P/E (trailing) | — |
| EPS (trailing) | $-0.39 |
| Burn multiple | — |
| Gross-margin trend (pts) | -0.1 |
| Cash / assets | 0.44 |
| Accruals (%) | -16.7% |
| Net debt / EBITDA | 5 |
| Statements as of | Q4 FY2026 · filed 2026-09-03 |
Momentum context — describes the past, not a signal
Low reached Apr 10, 2026 · high reached Nov 3, 2025 — by daily close.
| Price | $196.60 (as of 2026-10-02) |
|---|---|
| Last session move | — |
| % off 52-wk high | -41.7% |
| RSI (14) | 55 |
| Relative volume | 0.5× |
Risk flags
Insider activity (90 days)
| Cluster buyers | 0 |
|---|---|
| Sellers | 6 |
Insider selling is routine diversification, not a bearish signal.
Analyst mix
| Strong buy | 16 |
|---|---|
| Buy | 29 |
| Hold | 12 |
| Sell | 0 |
| Strong sell | 0 |
Ratings are context, not a price target. "Momentum" = how the mix changed over recent weeks, not a forecast.
From the headlines
Stock down 36% but viewed as undervalued; AI security positioning noted.
- Zscaler (ZS) Stock Still Trades Below Fair Value After 36% Slide
- Zscaler (ZS) Stock Drops Despite Market Gains: Important Facts to Note
AI take — daily, AI-generated
AI leans mixed
Strong fundamentals (25.4% growth, 76.8% margin, GP/A 0.33) with a 36% pullback creates a potential entry point, though early-stage grade and high dilution (13% rise) warrant caution on sustainability.
Generated by an AI model from the day's news — an opinion for context only. Not financial advice, not a recommendation, and not a price target.
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Data as of 2026-10-05 08:19 (end-of-day). How grades are computed →