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ZS · NASDAQ · STOCK

Zscaler (ZS) Stock Analysis

Technology Updated October 10, 2026
$233.95
52W $114.62 – $336.99
54/100
$37.80B
-599.3
0.94
AI Committee Verdict
Watch
54/100
Conviction: Contested · 50% agreement · 6 analysts
+35.6%
-21.4%
1.67:1
Contested

Is ZS Bullish or Bearish?

Mixed. Innellis AI committee rates Zscaler Inc. (ZS) Watch with a composite score of 54/100 , based on 6 analysts with 50% agreement. Last updated October 10, 2026.

What Would Change This View

Upgrade to Buy
Requires a committee score of 60.0 — +5.60 from today. Applies on the first day at or above the line; upgrades are never dampened.
Downgrade to Reduce
Requires the score to fall below 40.0 — -14.40 from today. The band boundary is 45.0, but a one-step downgrade must clear a further margin first. A score oscillating around the line should not change the rating every night.

Executive Summary

The committee is genuinely divided. Growth Analyst sees a compelling case — revenue growing 25.4% yoy -- genuine top-line momentum. Value Analyst remains cautious — price-to-book of 9.4x prices in significant intangible value. This disagreement is itself the signal — the setup is not clean in either direction.

Bull & Bear Case

Bull Case
  • Revenue growing 25.4% YoY -- genuine top-line momentum — Growth
  • 5 consecutive earnings beats -- consistent execution — Growth
  • Quarter-over-quarter growth rate is ACCELERATING, not just positive — Growth
  • Price structure making higher highs and higher lows — Technical
  • MACD histogram positive -- bullish momentum — Technical
  • Trend and market structure agree -- coherent bullish picture — Technical
Bear Case
  • Price-to-book of 9.4x prices in significant intangible value — Value
  • ROE of only -2.8% -- cheap may mean cheap for a reason — Value
  • RSI at 82 is in overbought territory — Technical
  • Price trading above the upper Bollinger Band -- stretched — Technical
  • Daily trend (uptrend) conflicts with the weekly trend (downtrend) -- fighting the larger trend — Technical
  • Weekly RSI at 78 -- overbought on the larger timeframe too — Technical
Both cases are generated from quantitative data signals, not qualitative or forward-looking judgement. They summarise what the numbers say today.
Price History (6M)

AI Investment Committee

Committee Consensus As of October 10, 2026
Overall Committee Score
54/100
Agreement
50%
Analysts
6
Conviction
Contested
Sector Rank
Top 79%
of 287 Technology peers
Value Analyst bearish
30 / 100 · Moderate confidence
Multiples don't clear a genuine value bar here, or cheapness looks justified by weak fundamentals
− Price-to-book of 9.4x prices in significant intangible value
Growth Analyst bullish
83 / 100 · High confidence
Strong, accelerating growth with consistent execution
+ Revenue growing 25.4% YoY -- genuine top-line momentum
Technical Analyst neutral
51 / 100 · High confidence
Mixed or range-bound price action
+ Price structure making higher highs and higher lows
− RSI at 82 is in overbought territory
Risk Analyst bearish
35 / 100 · Low confidence
Elevated risk from leverage, volatility, event exposure, or portfolio concentration -- size accordingly
− Bollinger bandwidth of 21.5% signals elevated volatility
Macro Analyst bullish
65 / 100 · Low confidence
Macro backdrop is supportive of risk assets generally, and this name's beta works in its favor
News Analyst bullish
62 / 100 · Low confidence
News flow and recent filings/analyst actions are net positive
Portfolio Manager bearish
30 / 100 · Moderate confidence
The existing book itself argues for caution here, independent of how good this specific stock looks
− Sector concentration is already high (HHI 2796.97)
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Investment Thesis Evolution

Committee score moved marginally from 54.8 to 54.4.

Analyst-level changes:
  • Risk Analyst: +1 bearish signal(s).
  • Technical Analyst: +3 bearish signal(s).

Comparing 2026-10-09 to 2026-10-10 (1 day apart).

Technical Analysis

RSI (14)
82.3
Overbought
MACD Histogram
1.863
Bullish Momentum
Trend Direction
Uptrend
Weekly: Downtrend
Market Structure
Hh Hl
Support
$183.97
Resistance
$317.21
Bollinger %B
1.18
Above Upper Band
Price vs Moving Averages
EMA 9
$212.27 Above
EMA 21
$202.41 Above
EMA 50
$187.30 Above
EMA 200
$181.19 Above

Fundamental Analysis

Valuation
33
Growth
84
Profitability
25
Financial Health
82
Cash Flow
70
Valuation
P/E Ratio -599.3×
P/B Ratio 14.41×
PEG Ratio 10.09
Dividend Yield 0.00%
52W High $336.99
52W Low $114.62
Quality & Growth
ROE -243.2%
ROA -80.3%
Gross Margin 7680.5%
Operating Margin -397.5%
Revenue Growth YoY —
Debt / Equity 0.71
AI Fundamental Assessment
P/E ratio of -599.3 (inexpensive relative to a 15-40x range); Price-to-book of 14.4x; PEG ratio of 10.1 (under 1.0 suggests growth is undervalued relative to price); Return on equity of -2.4%; Return on assets of -0.8%; Net margin of -1.9%; Gross margin of 76.8%; Current ratio of 1.70 (healthy short-term liquidity); Debt-to-equity of 0.71; Free cash flow per share is positive (5.32); Most recent quarter beat estimates by 6.5%; 5 consecutive earnings beats; EPS growth accelerating (+6.9% -> +10.2% QoQ); Average YoY EPS growth of 33.7%; Analyst estimates rising over recent quarters
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