Everything is Lined Up for Zscaler Stock Right Now

ZS has been steadily growing revenues at an average of 53% year-over-year

CFA, Senior Market Strategist
Jul 21, 2022 at 8:00 AM
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Zscaler Inc. (NASDAQ:ZS) is a high-multiple cloud security name that sold off nearly 70% in its peak-to-trough since November 2021. What’s more, ZS has been steadily growing revenues at an average of 53% year-over-year during the past five years, with the Russian-Ukraine war increasing demand for cybersecurity amid rumored attacks. The cybersecurity software name also extended its relationship with Amazon.com's (NASDAQ:AMZN) AWS, and announced a new partnership with Siemens. Support may be emerging as well, near the $145-$150 key pivot area.

ZS stock, Zscaler stock, stock picks

The cloud security company managed to post an earnings beat recently, despite the current macro environment, and raised its guidance. Zscaler shares also marked a higher low in June, despite the Nasdaq Composite (IXIC) selloff to new lows. Additionally, short interest is up 10.2% in the past month, and now accounts for 7.9% of Zscaler stock’s total available float. This has happened as Zscaler stock rallied – which leaves potential for trapped shorts. 

Bryan Sapp, CFA, is a Senior Market Strategist at Schaeffer's Investment Research, specializing in volatility, short-term equity trading, and macro analysis. Sapp, a more than 15-year veteran of the Schaeffer's research team, holds a B.S. in economics and an MBA with an entrepreneurship focus from the University of Louisville, and is a CFA Charterholder. Once a highly ranked poker player who amassed over $2 million in tournament winnings, Sapp has translated his skill for strategic plays into monster returns for Schaeffer’s swing trading services.

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