6 Green Days In A Row: Zscaler Stock Is Up 26%
Zscaler (ZS) stock has risen for 6 consecutive trading days, gaining 25.6% over that stretch. That added about $8.6 billion to the company’s market value, which now stands at about $42.2 billion. The stock closed at $260.45 on Monday, October 26, 22.5% below its 52-week high of $336.27 and 120.6% 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 Monday, October 26 and including dividends:
| Return Period | ZS | S&P 500 |
|---|---|---|
| 1 Day | 2.1% | 0.7% |
| 6 Days (Current Streak) | 25.6% | 0.2% |
| 1 Month (21 Trading Days) | 34.9% | -0.8% |
| 3 Months (63 Trading Days) | 71.8% | 3.6% |
| Year To Date | 15.8% | 13.2% |
| 1 Year (252 Trading Days) | -18.3% | 15.3% |
How The Streak Compares With The Market
The market explains little of this: the S&P 500 gained 0.2% over the same 6 sessions, including dividends, against Zscaler’s +25.6%. Over the past three months the stock is up 71.8%, a window that includes the streak; over the other 57 sessions of that window it was up 36.8%.
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.
A climb like this is worth respecting, and worth testing. Our Guidance Momentum screen tracks the stocks whose companies just raised their own forward numbers.
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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