The most recent trading session ended with Zscaler (ZS) standing at $198.26, reflecting a +1.41% shift from the previouse trading day's closing. The stock outperformed the S&P 500, which registered a daily gain of 0.61%. Elsewhere, the Dow gained 0.97%, while the tech-heavy Nasdaq added 0.33%.

Shares of the cloud-based information security provider have appreciated by 17.27% over the course of the past month, outperforming the Computer and Technology sector's gain of 8.6% and the S&P 500's gain of 5.36%.

The upcoming earnings release of Zscaler will be of great interest to investors. The company's upcoming EPS is projected at $0.63, signifying a 5.97% drop compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $605.68 million, up 21.94% from the year-ago period.

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 might also notice recent changes to analyst estimates for Zscaler. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 2.92% lower. Zscaler presently features a Zacks Rank of #3 (Hold).

Investors should also note Zscaler's current valuation metrics, including its Forward P/E ratio of 68.1. This represents a premium compared to its industry's average Forward P/E of 36.6.

Meanwhile, ZS's PEG ratio is currently 8.9. 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 90, placing it within the top 36% of over 250 industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.