How Low Can Zscaler Stock Go In A Market Crash

Zscaler has consistently underperformed relative to the S&P 500 during major market crashes, with an average decline of 57%. In the Inflation Shock, it plummeted 76% versus the S&P’s 25% drop, during the Covid pandemic, it fell 39% compared to 34%, and in the 2018 correction, it dropped 54% while the S&P decreased by 20%. Zscaler typically takes time to find its bottom, needing 18 months after the Inflation Shock, 1 month during the Covid pandemic, and 3 months after the 2018 correction. Recovery timelines vary; it has yet to reach pre-crisis levels after the Inflation Shock, while recovering within a month post-Covid and in 7 months after the 2018 correction. This historical pattern illustrates Zscaler’s vulnerability and sensitivity to market downturns rather than resilience.

Zscaler Stock Performance In Market Crashes:

Worried that ZS is yet to hit the bottom? You could take a look at the Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming the S&P 500 over the last 4-year period. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.