Zscaler, Inc. Stock News

TipRanks' ranking service discusses three stocks, including Broadcom and Oracle, that are favored by Wall Street.

Zscaler earns a buy rating for its strong fundamentals, consistent double beats, and robust revenue growth, despite ongoing share dilution and premium valuation. ZS's Q4 results highlight impressive adjusted earnings, growing operating cash flow, and improving GAAP profitability, supported by expanding recurring revenues and ample liquidity. Dilution remains a concern, but management has been c...

The fast-growing adoption of artificial intelligence (AI) technology in the past three years has been a tailwind for Nvidia (NVDA). The company enjoyed an early-mover advantage in this market thanks to its graphics processing units (GPUs), which have played a central role in the training of popular AI models.

Cybersecurity specialist Zscaler (ZS 2.82%) was a winner of a stock on Thursday, rising by nearly 3% in price. Investors were juiced by an analyst's recommendation upgrade, accompanied by a meaty price target raise.

Zscaler (NASDAQ:ZS), a frontrunner in cloud security and Zero Trust solutions, has witnessed a significant rebound in its stock in 2025. Shares are presently priced at $270, reflecting an increase of approximately 50% year-to-date, fueled by optimism surrounding AI-driven demand, increasing margins, and the company's bolstered leadership in enterprise cybersecurity.

Artificial intelligence (AI) stocks turned out to be big winners for investors in the past few years as the proliferation of this technology has allowed several companies to unlock new growth avenues, helping them boost their revenue and earnings at a healthy pace.

While Zscaler (ZS 2.14%) stock has had a strong run this year, the momentum shifted after the cybersecurity company reported its fiscal 2025 fourth-quarter results following the close of trading Tuesday. Though the period's numbers were good, and management issued upbeat guidance, the stock sank 4% in Wednesday trading.

Wall Street analysts don't always get things right, but it can pay to listen when they reach a consensus on a particular stock. The Wall Street Journal tracks 49 analysts who cover cybersecurity powerhouse Zscaler (ZS -0.84%), and the majority of them have assigned its stock a buy rating, with none recommending selling.