Zscaler Stock Rides A 5-Day Winning Streak To A 19% Gain
Zscaler (ZS) stock has risen for 5 consecutive trading days, gaining 18.9% over that stretch. That added about $6.0 billion to the company’s market value, which now stands at about $37.8 billion. The stock closed at $233.73 on Friday, October 9, 30.5% below its 52-week high of $336.27 and 98.0% above its low of $118.05.
The Streak Next To The S&P 500
Returns for ZS and the S&P 500 over the streak and the periods around it, all ending Friday, October 9 and including dividends:
| Return Period | ZS | S&P 500 |
|---|---|---|
| 1 Day | 7.8% | 0.6% |
| 5 Days (Current Streak) | 18.9% | 1.2% |
| 1 Month (21 Trading Days) | 43.0% | 3.0% |
| 3 Months (63 Trading Days) | 64.8% | 4.2% |
| Year To Date | 3.9% | 15.1% |
| 1 Year (252 Trading Days) | -25.5% | 17.0% |
A Stock-Specific Run, Or A Market Move?
The market explains little of this: the S&P 500 gained 1.2% over the same 5 sessions, including dividends, against Zscaler’s +18.9%. Over the past three months the stock is up 64.8%, a window that includes the streak; over the other 58 sessions of that window it was up 38.6%.
What The Numbers Say About The Rally
On the fundamentals, revenue grew 25.4% over the last twelve months, against a median of 17.9% for S&P 500 Information Technology stocks; and its operating margin is -3.6%, versus a median of 21.6%. Zscaler does not have positive trailing earnings, so there is no meaningful price-to-earnings multiple to compare. The read is mixed: revenue growth above the median on one side, an operating loss on the other.
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One Hot Stock Is A Story. Thirty Sound Ones Are A Strategy
A streak like this earns a place on your watchlist, and it also earns a question: how much of your outcome do you want depending on one company keeping this up?
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