Good MorningEquity markets began to correct last week, which may become a deep one for two reasons. The first is because the market has begun to believe the FOMC will not cut rates soon or even this year. The PCE index confirmed the belief on Friday and helped to send the S&P 500 down more than 2.0% at the week's low. The second reason is earnings. Reports from tech giants like Salesforce and Dell and small tech names like Gitlab and MongoDB included weak guidance that points to softness throughout the tech sector.
The S&P 500 is at a peak and could correct another 5% to 10% before hitting a solid bottom. The risk is that the market will fall through critical support at the 4,990 level and enter a long-term bear market. In that scenario, the market could shed as much as 35% before reaching the final low. The question is if the economy can sustain high interest rates for another six months or if it will tip into the recession that has been on the horizon for two years. Featured: Moonshot Coins for the Current Crypto Run (Crypto 101 Media) 
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Volume-weighted average prices (VWAP) are on most retail trading indicator lists for a reason: They matter. Volume is one of the most critical inputs for stock prices to move in a specific direction, so investors should watch out for any unusual trading volume spikes (buying or selling volume).
T... Read the Full Story |
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After reporting its first quarter 2024 financial results, shares of Foot Locker Inc. (NYSE: FL) jumped by as much as 40% as markets reacted to what could be the retail sector’s latest turnaround story. Now that the stock is consolidating to the end of the week, investors can use this breathe... Read the Full Story |
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The current economic environment is characterized by a complex and volatile mix of inflation, shifting consumer preferences and persistent whispers of a potential recession. The earnings reports from major retail sector players reflect the financial performance of each company, but collectively, t... Read the Full Story |
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From Our PartnersWelcome to a promising year ahead! We're excited to share our carefully curated guide, "Top 9 Stocks to Watch," designed to enhance your investment strategy in 2024. Click below to opt-in and receive up to two additional free bonus subscriptions. Unsubscribe at any time.
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Stocks | | | Asian shares retreated on Tuesday after a report showed that U.S. manufacturing contracted in May, in the latest sign the economy is slowing. Oil prices fell and U.S. futures edged higher. Japan's Nikkei 225 index lost 0.5% to 38,749.25 and the Kospi in Seoul was down 0.4% at 2,672.43. Hong Kong's H... Read the Full Story |
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There are plenty of ways for investors to gauge the amount of activity, or lack thereof, within an industry. One way can be seen in how the most prominent players interact with each other, mainly any rumors of mergers and acquisitions (M&A). Today, there is one such instance in the energy sect... Read the Full Story |
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Markets | | | Saudi Arabia said Friday it will sell a second sliver of stock in its state oil giant Aramco worth billions of dollars, its first tranche since its initial public offering back in 2019.Saudi Aramco, formally known as the Saudi Arabian Oil Co., acknowledged the stock sale in a corporate disclosure on... Read the Full Story |
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Costco Wholesale (NASDAQ: COST) is highly valued because the pullback in price action provides a strategic opportunity to capitalize on it. The reason is evident in the results and in the analysts' increased price targets. Among the details are industry-leading growth, market share gains, outperfo... Read the Full Story |
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Markets | | | Saudi Arabia and allied oil producing countries on Sunday extended output cuts through next year, a move aimed at supporting slack prices that haven't risen even amid turmoil in the Middle East and the start of the summer travel season. The OPEC+ alliance, made up of members of the producers cartel ... Read the Full Story |
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Markets | | | Storied Premier League club Everton faces an uncertain future after a proposed takeover by American investment firm 777 Partners collapsed on Saturday.The Miami-based private investment firm reached a deal in September to buy out Everton’s majority shareholder, Farhad Moshiri, who has a 94.1% stake.... Read the Full Story |
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Markets | | | Inflation ticked up to an annual 2.6% in Europe in May, according to official figures on Friday. That's more than expected as a painful spike in consumer prices takes its time to fade away.It's unlikely to stop the European Central Bank from making a first interest rate cut next week — and moving ah... Read the Full Story |
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Monday's Early Bird Stock Of The Day Zscaler, Inc. operates as a cloud security company worldwide. The company offers Zscaler Internet Access solution that provides users, workloads, IoT, and OT devices secure access to externally managed applications, including software-as-a-service (SaaS) applications and internet destinations; and Zscaler Private Access solution, which is designed to provide access to managed applications hosted internally in data centers, and private or public clouds. It also provides Zscaler Digital Experience that measures end-to-end user experience across business applications, as well as provides an easy-to-understand digital experience score for each user, application, and location within an enterprise. In addition, the company offers Posture Control solutions comprising Cloud Security Posture Management that identifies and remediates application misconfigurations in SaaS, infrastructure as a service, and PaaS to reduce risk and ensure compliance with industry and organizational benchmarks; Cloud Infrastructure Entitlement Management that detects and remediates excessive or unused cloud permissions and enforces least privileged access without disrupting productivity; Infrastructure as Code (IaC), which analyzes IaC templates to identify misconfigurations and other security issues prior to deployment to cloud infrastructure; and Vulnerability Scanning and Data Loss Prevention solutions. Its platform modules include Zscaler Central Authority, Zscaler Enforcement Node, and Zscaler Log Servers. The company serves customers in airlines and transportation, conglomerates, consumer goods and retail, financial services, healthcare, manufacturing, media and communications, public sector and education, technology, and telecommunications services industries. The company was formerly known as SafeChannel, Inc., and changed its name to Zscaler, Inc. in August 2008. Zscaler, Inc. was incorporated in 2007 and is headquartered in San Jose, California. | Should I Buy Zscaler Stock? ZS Bull and Bear Case Explained
These insights were generated using artificial intelligence. They are based on proprietary MarketBeat data, news articles, and custom LLM A.I. algorithms. This analysis of Zscaler was last updated on Thursday, February 20, 2025 at 9:11 PM.
Zscaler Bull Case -
Zscaler, Inc. reported earnings per share (EPS) of $0.77, exceeding analysts' expectations of $0.63, indicating strong financial performance and potential for growth.
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The company achieved a revenue of $628 million for the quarter, surpassing estimates of $605.51 million, showcasing robust demand for its cloud security solutions.
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With a year-over-year revenue increase of 26.4%, Zscaler, Inc. demonstrates significant growth momentum, which could attract more investors looking for expanding companies.
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The current stock price is approximately $205.53, reflecting a recent increase of 0.6%, which may indicate positive market sentiment towards the company.
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Institutional investors own 46.45% of Zscaler, Inc.'s stock, suggesting confidence from large financial entities in the company's future prospects.
Zscaler Bear Case -
Zscaler, Inc. has a negative net margin of 1.58%, which indicates that the company is currently not profitable, raising concerns about its financial health.
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The company has a negative return on equity of 0.75%, suggesting that it is not generating sufficient returns for its shareholders, which could deter potential investors.
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Analysts forecast a projected EPS of -0.1 for the current fiscal year, indicating expectations of continued losses, which may signal a challenging financial outlook.
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Insider selling activity has been noted, with executives selling a total of 10,248 shares valued at over $2 million in the last quarter, which could raise red flags about their confidence in the company's future.
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The stock has a high price-to-earnings (PE) ratio of -822.12, which is atypical and may suggest that the stock is overvalued relative to its earnings, posing a risk for investors.
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