ZS Stock Recent News

Let's find out which cybersecurity stock between Zscaler and Palo Alto Networks is a better bet.

The Investment Committee give you their top stocks to watch for the second half.

Over the past few months, the Trump administration's tariffs on America's top trade partners has boosted uncertainty in the economy and in the markets, driving some investors to seek out tariff- and recession-resistant stocks to ride out the storm. Some popular safe havens these investors turned to include the consumer staples, utility, defense, insurance, and healthcare sectors.

Zacks.com users have recently been watching Zscaler (ZS) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.

ZS is gaining from the growing demand for cybersecurity solutions and capitalizing on new AI opportunities.

Zscaler is at a breakout point, poised to benefit from the growing Zero Trust and SASE markets, with strong financials and high client stickiness. Q2 2025 earnings show 23% YoY revenue growth, 77% gross margins, and a 115% Net Retention Rate, indicating operational scalability and profitability potential. Despite rich valuations, Zscaler's leadership position and high margins justify the investment, with risks from competition and macro headwinds being manageable.

Zscaler, Inc. has a strong growth outlook driven by enterprise GenAI adoption and reshoring manufacturing, necessitating increased data protection and zero trust security. Despite macroeconomic challenges, Zscaler's robust investments in its sales department may drive growth through upselling additional services. Zscaler's Q2 '25 saw 23% ARR growth, bolstered by a larger ZS sales team and strong upselling, with expectations to close eFY25 at $3b in ARR.

The technology sector, which had been primarily responsible for powering the market's recent ascent until this year, was at the forefront of the recent downturn, weighed down by global economic uncertainty and a renewed wave of risk-off sentiment. However, within the broader tech landscape, one industry has stood out for its relative strength and resilience: cybersecurity stocks.

Zscaler (ZS) concluded the recent trading session at $219.86, signifying a +1.99% move from its prior day's close.

When investing in growth stocks, it pays to latch on to a sustainable trend or catalyst that can enable the business to continue posting healthy long-term growth. One such trend is cybersecurity.