In the latest trading session, Zscaler (ZS) closed at $186.78, marking a -1.62% move from the previous day. The stock fell short of the S&P 500, which registered a loss of 0.33% for the day. Elsewhere, the Dow saw a downswing of 0.22%, while the tech-heavy Nasdaq depreciated by 0.56%.

The cloud-based information security provider's stock has climbed by 13.69% in the past month, exceeding the Computer and Technology sector's gain of 2.83% and the S&P 500's gain of 1.83%.

The upcoming earnings release of Zscaler will be of great interest to investors. The company's earnings per share (EPS) are projected to be $0.63, reflecting a 5.97% decrease from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $605.68 million, indicating a 21.94% increase compared to the same quarter of the previous year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.87 per share and a revenue of $2.61 billion, signifying shifts of -10.03% and +20.57%, respectively, from the last year.

Investors should also pay attention to any latest changes in analyst estimates for Zscaler. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Zscaler currently has a Zacks Rank of #4 (Sell).

Digging into valuation, Zscaler currently has a Forward P/E ratio of 66.13. This indicates a premium in contrast to its industry's Forward P/E of 35.36.

It is also worth noting that ZS currently has a PEG ratio of 8.64. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Services was holding an average PEG ratio of 2.27 at yesterday's closing price.

The Internet - Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 59, finds itself in the top 24% echelons of all 250+ industries.