ZS Stock Analysis: Buy, Sell, or Hold?

ZS - Zscaler, Inc. Common Stock

SERVICES-COMPUTER PROGRAMMING SERVICES
$181.75
6.80 (3.88%) ▲
5d: -1.01%
30d: +30.1%
90d: +6.28%
WAIT
LOW Confidence
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Analysis Updated: Aug 21, 2026 12:00 AM ET
Earnings: Sep 03, 2026 11d
Smart Money Distribution

Options positioning is turning defensive after a sharp run-up - a pattern consistent with institutional profit-taking. View Scanner →

Signal fired Aug 7, 2026 at $168.68 · last confirmed Aug 17, 2026

Strength: 7.8/10

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Interactive Price Chart (1 Month)

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💡
Bottom Line:
📊 MIXED SIGNALS: ZS shows conflicting indicators. Wait for confirmation before entering.
See Forward Earnings Fair Value & Price Prediction →

Long-Term Wealth Forecast (2031)

Based on Analyst Consensus Growth & Historical Valuation

0% (Stagnation) 50% (Hyper Growth)
EST. PRICE IN 2031
$165.56
Based on 7.6% avg growth
INTRINSIC VALUE TODAY
$102.80
Trading above historical range

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 $181.75, which is considered extended relative to its 30-day fair value range of $145.55 to $177.12. The stock's valuation (Forward PE: 39.5) is in line with its historical norms (38.6). At these levels, the market is pricing in 0.8% annual earnings growth. This growth rate appears achievable given the company's track record, suggesting the valuation is rational.

Technical Outlook: Technically, ZS is in a uptrend. Immediate support is located at $168.00, while resistance sits at $190.97. The stock is showing strong short-term momentum, up 3.9% recently.

Market Sentiment: ZS scores 0/100 on our bottoming-setup gauge. Note this measures entry quality, not trend direction — a low score can mean the chart is extended after a strong run (don't chase) or still falling without stabilization; better entries typically come after a pullback toward the 20-day average. Current signals suggest waiting for a better entry point before initiating new positions.

Quick Decision Summary

Current Position EXTENDED
Historical Trading Range $145.55 - $177.12
Company Quality Score 32/100 (SELL)
Volume Confirmation HIGH
Confidence Score 29.5%

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All Signals

  • BEARISH: Price extended above range
  • BEARISH: Weak technical setup (0/100)
  • BULLISH: High volume confirmation
  • BULLISH: Strong upward momentum (+3.9%)
  • NEUTRAL: Near Wall St target ($196.95)
  • NEUTRAL: Market pricing in 0.8% annual earnings growth - fairly valued
  • WARNING: Composite score 32/100 in the bottom quintile — this cohort historically lags the market

Trading Range Analysis

30-Day Trading Range $145.55 - $177.12
Current vs Trading Range EXTENDED

Support & Resistance Levels

Support Level $168.00
Resistance Level $190.97
Current Trend Uptrend
Technical data as of Aug 21, 2026

Fundamental Context

Forward P/E (Next Year Est.) 39.53
Wall Street Target $196.95 (+8.4%)
Revenue Growth (YoY) 25.4%
Profit Margin -2.4%
Valuation Premium vs History +0.8% premium
PE vs Historical 39.5 vs 38.6 FAIR
Market-Implied Price Targets If current PE multiple persists
Implied Growth (YoY): +0.8% (market-implied from PE analysis)
1-Year Target $183.20 (+1%)
2-Year Target $184.66 (+2%)
3-Year Target $186.14 (+2%)
3-Yr Target (if PE normalizes) (PE: 40→39) PE COMPRESSION $181.78 (0%)
Earnings growth offset by PE compression
3-Year Scenarios Using analyst projected EPS growth
Bull: (PE: 39.5, Growth: 11.2%) $250.19 (+38%)
Base: (SPY PE: 20.1, Growth: 11.2%) $127.04 (-30%)
Bear: (PE: 17.1, Growth: 11.2%) $107.98 (-41%)
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Last updated: August 22, 2026 1:42 PM ET
Data refreshes hourly during market hours. Next update: 2:42 PM
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Ticker Score Recommendation Change %
Insider Activity (6 Months)
0
Buys
7
Sells
Net
INSIDERS SELLING
Recent Transactions
James A Beer SELL 177 shares 2026-03-18
Adam Geller SELL 2094 shares 2026-03-18
Adam Geller SELL 1485 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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