Opportunities At ZScaler For The Patient And Impatient Alike
Blowout earnings, stock dumps. Smells like opportunity to us!
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Patience, Episode 707
The thing with the accumulation method is that sometimes it takes a l-o-n-g time to come to fruition, meaning, the stock you have your beady eye on making money from can just trend sideways for a long time. Zscaler ( ZS 0.00%↑ ) , which we think has a very bright future - it's the #1 player in zero-trust network security, for which demand is not likely to collapse any time soon - is likely to do this for a little while by the looks of things. The stock bombed in 2022, found support at the .786 retrace of its whole post-IPO move up, put in a rapid move up as growth stocks recovered in 2023, and upon the earnings print yesterday put in what looks like a fairly standard smaller-degree Wave 2 down. If the stock holds above $109 - or at a push over $100 - then the up-move can still have legs.
Fundamentals of the print were very good indeed. Numbers follow. Then after the numbers, a section on operations written by our resident Mr Fixit @niksurfs, which is derived from the earnings call. We then move on to valuation and the chart.
Below we walk through the numbers, a review of the earnings call, together with short-term trade and long-term investment ideas on this name. This is for our Premium and Pro members - if you’ve yet to move up to the pay versions of this service, you can choose a subscription level right from this button.