ZS Stock Analysis: Buy, Sell, or Hold?

ZS - Zscaler, Inc. Common Stock

SERVICES-COMPUTER PROGRAMMING SERVICES
$135.79
2.63 (1.98%) ▲
5d: -10.55%
30d: -7.62%
90d: -41.09%
HOLD
MODERATE Confidence
Protect Your ZS Gains
Analysis Updated: Mar 30, 2026 12:00 AM ET
Earnings: May 28, 2026
Smart Money Accumulation

ZS is down 6.5% this week, but smart money is accumulating calls. Top strike: $145 2026-05-15 with 1,125 OI. Call ratio: 62% View Scanner →

Strength: 4.4/10

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Interactive Price Chart (1 Month)

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💡
Bottom Line:
📊 HOLD: ZS shows mixed signals. Fine to hold existing positions. Not urgent to buy or sell.

Long-Term Wealth Forecast (2031)

Based on Analyst Consensus Growth & Historical Valuation

0% (Stagnation) 50% (Hyper Growth)
EST. PRICE IN 2031
$175.64
Based on 9.0% avg growth
INTRINSIC VALUE TODAY
$109.06
Trading above fair value

How this is calculated: We use a Growth Decay Model: starting with analyst consensus growth (adjusted above) and gradually slowing it down to a long-term terminal rate (4%) by Year 5. This provides a more realistic valuation than assuming constant hyper-growth. We then apply a 25.0x Exit PE.

In-depth Analysis How we analyze

Valuation Analysis: ZS is currently trading at $135.79, which is considered oversold relative to its 30-day fair value range of $143.75 to $161.30. From a valuation perspective, the stock is trading at a discount (Forward PE: 29.0) compared to its historical average (47.3). Remarkably, the market is currently pricing in an annual earnings decline of 15.1% over the next few years. This aligns with recent fundamental challenges.

Technical Outlook: Technically, ZS is in a strong downtrend. Immediate support is located at $128.00, while resistance sits at $161.90.

Market Sentiment: ZS has a weak technical setup (25/100), with bearish trendlines and momentum suggesting caution for short-term entries. Wall Street analysts see significant upside, with an average price target of $233.70 (+75.5%). The stock is fairly positioned - fine to hold existing positions or accumulate slowly on dips, but not an urgent buy.

Quick Decision Summary

Current Position OVERSOLD
Fair Price Range $143.75 - $161.30
Company Quality Score 55/100 (HOLD)
Volume Confirmation HIGH
Confidence Score 57.1%

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All Signals

  • BULLISH: Price oversold vs 30-day range
  • BEARISH: Weak technical setup (25/100)
  • BULLISH: High volume confirmation
  • BULLISH: Trading 75.5% below Wall St target ($233.70)
  • CAUTION: 5-day price weakness (-10.5%) - monitor closely

Fair Price Analysis

30-Day Fair Range $143.75 - $161.30
Current vs Fair Value OVERSOLD

Support & Resistance Levels

Support Level $128.00
Resistance Level $161.90
Current Trend Strong Downtrend
Technical data as of Mar 30, 2026

Fundamental Context

Forward P/E (Next Year Est.) 29.02
Wall Street Target $233.70 (+75.5%)
Revenue Growth (YoY) 25.9%
Profit Margin -2.2%
Valuation Discount vs History -15.1% cheaper
PE vs Historical 29.0 vs 47.3 CHEAP
Market-Implied Price Targets If current PE multiple persists
Implied Growth (YoY): -15.1% (market-implied from PE analysis)
1-Year Target $119.84 (-10%)
2-Year Target $107.86 (-19%)
3-Year Target $97.07 (-27%)
3-Yr Target (if PE normalizes) (PE: 29→47) $158.22 (+19%)
3-Year Scenarios Using analyst projected EPS growth
Bull: (PE: 29.0, Growth: 13.9%) $197.02 (+48%)
Base: (SPY PE: 22.4, Growth: 13.9%) $152.07 (+14%)
Bear: (PE: 19.0, Growth: 13.9%) $129.26 (-3%)
💡 Upside Surprise Potential
If earnings stabilize (0% growth), PE could expand from 29.0 to 47.3
Stabilization Target: $217.04 (+63.0%)
PE Expansion Potential: +63.0%
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Last updated: March 30, 2026 2:47 PM ET
Data refreshes hourly during market hours. Next update: 3:47 PM
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Ticker Score Recommendation Change %
Insider Activity (6 Months)
0
Buys
14
Sells
Net
INSIDERS SELLING
Recent Transactions
Kevin Rubin SELL 1682 shares 2026-03-17
Jagtar Singh Chaudhry SELL 1941 shares 2026-03-17
Robert Schlossman SELL 2263 shares 2026-03-17

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Advanced ZS Option Strategies

Professional options setups generated by AI based on today's ZS price and gamma walls.

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