The cloud security company is slated to report quarterly results after Monday's close
Zscaler Inc (NASDAQ:ZS) is scheduled to report fiscal first-quarter results after the close on Monday, Dec. 2. According to Zacks, the consensus estimate for the cloud security company's earnings and revenue are 63 cents per share and $605.7 million, respectively. The former represents a 6% year-over-year decrease, and the latter a 21.9% year-over-year increase.
At last glance, ZS was 3.2% lower at $203.55. In October, the equity experienced two significant pullbacks, both of which were saved by the 70-day moving average near the $180 level. Shares have recovered handily since then, and now boast support at $200, though they sport an 8.5% year-to-date deficit.
Looking over the last two years, Zscaler stock tends to fall after reporting. The stock finished five of the past eight next-day sessions lower -- including an 18.6% dip in September. The shares averaged a move of 8.4% over the last eight quarters, regardless of direction, but the options pits are pricing in a larger-than-usual swing of 10.9% this time.
Ahead of the event, BTIG raised its target price from $205 to $238 -- a nearly 17% premium to the stock's current perch. Data from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) currently shows the stock with a 50-day call/put volume ratio of 2.48, which sits in the 92nd percentile of annual readings.