ZS · NASDAQ · STOCK
Zscaler (ZS) Stock Analysis
$233.95
52W $114.62 – $336.99
54/100
$37.80B
-599.3
0.94
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)
Investment Thesis Evolution
Committee score moved marginally from 54.8 to 54.4.
- New bearish signals: 4 appeared.
- Bullish support removed: 1 signal(s) disappeared.
- Bearish pressure eased: 2 signal(s) disappeared.
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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