Zscaler (ZS) closed the latest trading day at $188.76, indicating a -1.46% change from the previous session's end. The stock's change was less than the S&P 500's daily loss of 0.02%. Elsewhere, the Dow gained 0.38%, while the tech-heavy Nasdaq added 0.04%.

Prior to today's trading, shares of the cloud-based information security provider had gained 13.67% over the past month. This has outpaced the Computer and Technology sector's gain of 4.44% and the S&P 500's gain of 3.77% in that time.

Investors will be eagerly watching for the performance of Zscaler in its upcoming earnings disclosure. The company is expected to report EPS of $0.63, down 5.97% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $605.68 million, indicating a 21.94% growth compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $2.87 per share and revenue of $2.61 billion, which would represent changes of -10.03% and +20.57%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Zscaler. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 2.92% decrease. As of now, Zscaler holds a Zacks Rank of #4 (Sell).

Investors should also note Zscaler's current valuation metrics, including its Forward P/E ratio of 66.73. For comparison, its industry has an average Forward P/E of 37.89, which means Zscaler is trading at a premium to the group.

One should further note that ZS currently holds a PEG ratio of 8.72. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. ZS's industry had an average PEG ratio of 2.28 as of yesterday's close.

The Internet - Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 93, placing it within the top 37% of over 250 industries.