Zscaler Stock: 5 Straight Green Days, Up 23%
Zscaler (ZS) stock has risen for 5 consecutive trading days, gaining 23.0% over that stretch. That added about $7.7 billion to the company’s market value, which now stands at about $41.3 billion. The stock closed at $255.15 on Friday, October 23, 24.1% below its 52-week high of $336.27 and 116.1% above its low of $118.05.
ZS Versus The S&P 500
Returns for ZS and the S&P 500 over the streak and the periods around it, all ending Friday, October 23 and including dividends:
| Return Period | ZS | S&P 500 |
|---|---|---|
| 1 Day | 7.3% | -0.5% |
| 5 Days (Current Streak) | 23.0% | -0.5% |
| 1 Month (21 Trading Days) | 18.9% | -1.0% |
| 3 Months (63 Trading Days) | 73.2% | 3.1% |
| Year To Date | 13.4% | 12.4% |
| 1 Year (252 Trading Days) | -17.1% | 15.1% |
Is This Move About Zscaler Or The Market?
The market explains little of this: the S&P 500 lost 0.5% over the same 5 sessions, including dividends, against Zscaler’s +23.0%. Over the past three months the stock is up 73.2%, a window that includes the streak; over the other 58 sessions of that window it was up 40.8%.
Do The Fundamentals Support The Run?
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.
If you are looking for strength with more behind it than a hot tape, our Guidance Momentum screen surfaces the names where management raised its own outlook.
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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