Latest news with #EarningsESP
Yahoo
2 days ago
- Business
- Yahoo
Should You Hold or Sell BlackBerry Stock Before Q1 Earnings Release?
BlackBerry Limited BB is set to report first-quarter fiscal 2026 results on June 24. The Zacks Consensus Estimate is pegged at breakeven and has remained unchanged in the past 60 days. In the prior-year quarter, the company reported a loss of 3 cents per share. BB expects fiscal first-quarter 2026 revenues to be in the $107-$115 million range. The company has an impressive earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, the average beat being 93.75%. Image Source: Zacks Investment Research Our proven model does not conclusively predict an earnings beat for BlackBerry this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But, that is not the case here. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter. BB has an Earnings ESP of 0.00% and a Zacks Rank #3 at present. You can see the complete list of today's Zacks #1 Rank stocks here. BB's performance is expected to have benefited from strength in the QNX segment (former IoT division), particularly solid demand for its solutions across the advanced driver assistance systems market and digital cockpit domains. Increasing traction for its next-generation version of QNX operating system SDP 8.0 (across automotive, rail medical, industrial and robotic verticals) as well as the QNX Cabin (digital cockpit development) solution augurs well. Earlier in the year, QNX and Microsoft MSFT partnered to aid automakers in building, validating and refining software within the cloud to power the evolution of SDVs. The partnership will bring the QNX Software Development Platform 8.0 to Microsoft Azure, offering automakers a comprehensive cloud-based environment to accelerate innovation while reducing development risks. Also, QNX and Microsoft plan to extend their collaboration to include the QNX Hypervisor and the QNX Cabin. Healthy revenues from royalties and development seat licenses are likely to have acted as tailwinds. BB's focus on go-to-market penetration, especially in adjacent automotive verticals, bodes well. Earlier in the year, BB launched its QNX General Embedded Development Platform to speed up time to market for scalable and secure embedded systems. The Secure Communications division's performance is likely to have been driven by healthy uptake of the SecuSmart, UEM endpoint management and AtHoc critical event management solutions. The sale of Cylance and extensive cost restructuring are aiding the performance of this particular division. BlackBerry Limited price-eps-surprise | BlackBerry Limited Quote In February 2025, BlackBerry sold its Cylance endpoint security assets to Arctic Wolf. BB has successfully achieved its initial target of cutting back roughly $150 million from its run rate. For the quarter to be reported, the company expects adjusted EBITDA to be between breakeven and $7 million. For the Secure Communications unit, BlackBerry expects revenues to be in the band of $50-$54 million. Licensing & Other revenues are expected to be roughly $6 million. For the QNX business, revenues are expected to be in the range of $51-$55 million. Affected by a volatile automotive backdrop, the company anticipates a sequential drop in QNX revenues from $65.8 million. In the last earnings call, management highlighted that due to recent tariff changes, especially on automotive goods, BlackBerry is currently unsure how this will affect its business. While BB does not expect a direct impact on its products and services, there may be indirect effects like supply-chain disruptions and changes in demand. BlackBerry is taking a cautious stance on the Secure Communications division due to ongoing turmoil in its core government markets. The potential impact of DOGE and other shifts within the U.S. administration, as well as political changes in Canada, Germany and other regions, are likely to create a challenging and unstable environment. While significant effects are yet to be seen, the situation remains unpredictable. These developments could lead to short-term disruptions for the business. BlackBerry also faces increasing competitive pressure in both IoT and cybersecurity businesses. BB's shares have gained 14% in the past six months, significantly outpacing the Internet Software industry's growth of 9.3%. The broader Zacks Computer & Technology sector and the S&P 500 composite have registered declines of 1.4% and 0.3%, respectively. Image Source: Zacks Investment Research Blackberry has underperformed its peers (within the cybersecurity space), such as CrowdStrike Holdings, Inc. CRWD. It has registered higher gains than Fortinet FTNT. Fortinet has gained 4.6%, while CrowdStrike is up 34.3% over the same time frame. BB stock is trading at a discount, with a 12-month price/book multiple of 3.58X compared with the Internet Software industry's 6.38X. Image Source: Zacks Investment Research Fortinet and CrowdStrike are trading at a 12-month price/book multiple of 39.28X and 34.64X, respectively, compared with the Security industry's multiple of 24.46X. Despite near-term headwinds and geo-political uncertainties, BlackBerry's strong execution on cost cuts, strategic divestitures, and continued QNX momentum support a stable outlook. The company's impressive earnings surprise history and improving fundamentals make a compelling case. For now, holding BB stock remains the most prudent strategy, allowing investors to benefit from its growth prospects while navigating external risks. New investors could wait for a more favorable entry point. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Microsoft Corporation (MSFT) : Free Stock Analysis Report Fortinet, Inc. (FTNT) : Free Stock Analysis Report BlackBerry Limited (BB) : Free Stock Analysis Report CrowdStrike (CRWD) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
3 days ago
- Business
- Yahoo
How Should Investors Approach Kroger Stock Before Q1 Earnings?
The Kroger Co. KR is set to report its first-quarter fiscal 2025 results on June 20, before the opening bell. KR is likely to have registered a marginal increase in the top line. The Zacks Consensus Estimate for revenues is pegged at $45.38 billion, indicating a slight improvement of 0.3% from the prior-year reported is expected to have witnessed a year-over-year increase in its bottom line. The Zacks Consensus Estimate for first-quarter earnings per share has remained steady at $1.45 over the past 30 days, which implies a year-over-year jump of 1.4%. Image Source: Zacks Investment Research KR has a trailing four-quarter earnings surprise of 2.6%, on average. In the last reported quarter, this Cincinnati, OH-based company's bottom line beat the Zacks Consensus Estimate by a margin of 1.8%. (See the Zacks Earnings Calendar to stay ahead of market-making news.) The Kroger Co. price-consensus-eps-surprise-chart | The Kroger Co. Quote As investors prepare for Kroger's first-quarter announcement, the question looms regarding earnings beat or miss. Our proven model does not conclusively predict an earnings beat for Kroger this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that's not the case here. You can see the complete list of today's Zacks #1 Rank stocks has a Zacks Rank #4 (Sell) and an Earnings ESP of 0.00% at present. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter. Kroger's top line is likely to have benefited from its continued focus on customer-centric strategies, particularly the private-label offerings under the 'Our Brands' portfolio. The company's ability to innovate and roll out a diverse range of value-focused products has helped deepen customer engagement and loyalty. Personalized promotions and fuel rewards have also played a key role in retaining price-sensitive customers. The Zacks Consensus Estimate for identical sales without fuel is projected to grow 2.3%. The company's focus on digitization has strengthened its omnichannel capabilities and sharpened customer connection, driving sales through expanded services like Boost and Delivery Now. By enhancing its fulfillment infrastructure, Kroger has effectively kept pace with growing online demand. With digital sales surpassing $13 billion in fiscal 2024, this growth trend is likely to have continued into the first alternative profit businesses add meaningful contributions to overall revenues. Growth in media income, led by Kroger Precision Marketing, reflects the company's ability to offer advertisers targeted reach and measurable results. These gains, combined with momentum in the health and wellness segment, have contributed to a more diversified revenue base. The renewal of its partnership with Express Scripts further expanded its pharmacy reach and service the aforementioned factors raise optimism, we cannot ignore the challenging retail environment marked by inflation, high interest rates and shifting consumer behavior. Although Kroger has maintained solid engagement with its core customer base, overall sales momentum remains somewhat limited. KR's fuel operations, a key loyalty driver via fuel rewards, were a drag in the fourth quarter. The consensus mark indicates supermarket fuel sales are likely to fall 5.8% year over year to $4,670 million for the first quarter. Moreover, the termination of the Albertsons merger has also left Kroger with $5.8 billion in new debt, pushing up projected interest expenses for 2025, which could pressure margins. Kroger has witnessed an impressive surge in its stock price over the past year. The stock has rallied 30.3% compared with the industry's rise of 38.2%.While Kroger has outperformed Costco Wholesale Corporation COST and Dollar General Corporation DG, it has underperformed Walmart Inc. WMT. Shares of Costco and Walmart have risen 13.1% and 39.8%, respectively, while Dollar General faced a decline of 11.9% over the past year. Image Source: Zacks Investment Research From a valuation standpoint, Kroger currently trades at a discount relative to its industry peers. The company's forward 12-month price-to-earnings (P/E) ratio is 13.38, lower than the industry average of 31.95 and the S&P 500's 21.87. However, Kroger is trading above its median P/E level of 12.93, observed over the past year. Kroger is trading at a discount to Walmart (with a forward 12-month P/E ratio of 35.10), Costco (49.93) and Dollar General (18.82). Image Source: Zacks Investment Research As Kroger prepares to report its first-quarter results, investors should weigh the company's strategic strengths against a backdrop of broader market challenges. While initiatives in private-label innovation, digital expansion and alternative profit streams are likely to have supported the top line, external pressures such as inflation, shifting consumer behavior and rising interest expenses may continue to limit upside potential. With no clear indication of an earnings beat from the Zacks model, it may be prudent for investors to remain on the sidelines until greater clarity emerges from the upcoming earnings report. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Walmart Inc. (WMT) : Free Stock Analysis Report Dollar General Corporation (DG) : Free Stock Analysis Report The Kroger Co. (KR) : Free Stock Analysis Report Costco Wholesale Corporation (COST) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Globe and Mail
3 days ago
- Business
- Globe and Mail
How Should Investors Approach Kroger Stock Before Q1 Earnings?
The Kroger Co. KR is set to report its first-quarter fiscal 2025 results on June 20, before the opening bell. KR is likely to have registered a marginal increase in the top line. The Zacks Consensus Estimate for revenues is pegged at $45.38 billion, indicating a slight improvement of 0.3% from the prior-year reported figure. Kroger is expected to have witnessed a year-over-year increase in its bottom line. The Zacks Consensus Estimate for first-quarter earnings per share has remained steady at $1.45 over the past 30 days, which implies a year-over-year jump of 1.4%. Image Source: Zacks Investment Research KR has a trailing four-quarter earnings surprise of 2.6%, on average. In the last reported quarter, this Cincinnati, OH-based company's bottom line beat the Zacks Consensus Estimate by a margin of 1.8%. (See the Zacks Earnings Calendar to stay ahead of market-making news.) What the Zacks Model Predicts for KR As investors prepare for Kroger's first-quarter announcement, the question looms regarding earnings beat or miss. Our proven model does not conclusively predict an earnings beat for Kroger this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that's not the case here. You can see the complete list of today's Zacks #1 Rank stocks here. Kroger has a Zacks Rank #4 (Sell) and an Earnings ESP of 0.00% at present. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter. Key Factors Driving Kroger's Q1 Performance Kroger's top line is likely to have benefited from its continued focus on customer-centric strategies, particularly the private-label offerings under the 'Our Brands' portfolio. The company's ability to innovate and roll out a diverse range of value-focused products has helped deepen customer engagement and loyalty. Personalized promotions and fuel rewards have also played a key role in retaining price-sensitive customers. The Zacks Consensus Estimate for identical sales without fuel is projected to grow 2.3%. The company's focus on digitization has strengthened its omnichannel capabilities and sharpened customer connection, driving sales through expanded services like Boost and Delivery Now. By enhancing its fulfillment infrastructure, Kroger has effectively kept pace with growing online demand. With digital sales surpassing $13 billion in fiscal 2024, this growth trend is likely to have continued into the first quarter. Kroger's alternative profit businesses add meaningful contributions to overall revenues. Growth in media income, led by Kroger Precision Marketing, reflects the company's ability to offer advertisers targeted reach and measurable results. These gains, combined with momentum in the health and wellness segment, have contributed to a more diversified revenue base. The renewal of its partnership with Express Scripts further expanded its pharmacy reach and service offerings. While the aforementioned factors raise optimism, we cannot ignore the challenging retail environment marked by inflation, high interest rates and shifting consumer behavior. Although Kroger has maintained solid engagement with its core customer base, overall sales momentum remains somewhat limited. KR's fuel operations, a key loyalty driver via fuel rewards, were a drag in the fourth quarter. The consensus mark indicates supermarket fuel sales are likely to fall 5.8% year over year to $4,670 million for the first quarter. Moreover, the termination of the Albertsons merger has also left Kroger with $5.8 billion in new debt, pushing up projected interest expenses for 2025, which could pressure margins. KR Stock's Performance vs. COST, WMT & DG Kroger has witnessed an impressive surge in its stock price over the past year. The stock has rallied 30.3% compared with the industry's rise of 38.2%. While Kroger has outperformed Costco Wholesale Corporation COST and Dollar General Corporation DG, it has underperformed Walmart Inc. WMT. Shares of Costco and Walmart have risen 13.1% and 39.8%, respectively, while Dollar General faced a decline of 11.9% over the past year. Does Kroger Tick the Boxes for Value Investing? From a valuation standpoint, Kroger currently trades at a discount relative to its industry peers. The company's forward 12-month price-to-earnings (P/E) ratio is 13.38, lower than the industry average of 31.95 and the S&P 500's 21.87. However, Kroger is trading above its median P/E level of 12.93, observed over the past year. Kroger is trading at a discount to Walmart (with a forward 12-month P/E ratio of 35.10), Costco (49.93) and Dollar General (18.82). Image Source: Zacks Investment Research How to Play Kroger Ahead of Q1 Earnings? As Kroger prepares to report its first-quarter results, investors should weigh the company's strategic strengths against a backdrop of broader market challenges. While initiatives in private-label innovation, digital expansion and alternative profit streams are likely to have supported the top line, external pressures such as inflation, shifting consumer behavior and rising interest expenses may continue to limit upside potential. With no clear indication of an earnings beat from the Zacks model, it may be prudent for investors to remain on the sidelines until greater clarity emerges from the upcoming earnings report. Only $1 to See All Zacks' Buys and Sells We're not kidding. Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent. Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators, and more, that closed 256 positions with double- and triple-digit gains in 2024 alone. See Stocks Now >> Click to get this free report Walmart Inc. (WMT): Free Stock Analysis Report Dollar General Corporation (DG): Free Stock Analysis Report The Kroger Co. (KR): Free Stock Analysis Report
Yahoo
4 days ago
- Business
- Yahoo
FedEx (FDX) Earnings Expected to Grow: What to Know Ahead of Next Week's Release
The market expects FedEx (FDX) to deliver a year-over-year increase in earnings on lower revenues when it reports results for the quarter ended May 2025. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on June 24. On the other hand, if they miss, the stock may move lower. While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise. This package delivery company is expected to post quarterly earnings of $5.94 per share in its upcoming report, which represents a year-over-year change of +9.8%. Revenues are expected to be $21.7 billion, down 1.9% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 1.33% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts. Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For FedEx, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -9.47%. On the other hand, the stock currently carries a Zacks Rank of #4. So, this combination makes it difficult to conclusively predict that FedEx will beat the consensus EPS estimate. Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that FedEx would post earnings of $4.65 per share when it actually produced earnings of $4.51, delivering a surprise of -3.01%. Over the last four quarters, the company has beaten consensus EPS estimates two times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. FedEx doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report FedEx Corporation (FDX) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Globe and Mail
27-05-2025
- Business
- Globe and Mail
Zscaler to Post Q3 Earnings: Time to Buy, Sell or Hold the Stock?
Zscaler ZS is scheduled to report its third-quarter fiscal 2025 results on May 29, 2025. Zscaler anticipates revenues between $665 million and $667 million for third-quarter fiscal 2025. The Zacks Consensus Estimate for ZS' fiscal third-quarter revenues is pegged at $666.1 million, indicating year-over-year growth of 20.4%. For the fiscal third quarter, the company expects non-GAAP earnings per share in the band of 75-76 cents. The Zacks Consensus Estimate for ZS' fiscal third-quarter earnings is pegged at 75 cents per share, which remained unchanged over the past 60 days and indicates a year-over-year decline of 14.8%. Zscaler's earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 24.55%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.) Zscaler, Inc. Price and EPS Surprise Zscaler, Inc. price-eps-surprise | Zscaler, Inc. Quote Earnings Whispers for Zscaler Our proven model does not conclusively predict an earnings beat for Zscaler this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here. You can see the complete list of today's Zacks #1 Rank stocks here. Though Zscaler currently carries a Zacks Rank #3, it has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter. Factors to Note for Zscaler's Q3 Results Zscaler's third-quarter results are expected to show sustained demand for its security and networking solutions, given the persistent expansion of the global security space. The adoption of ZS' in-cloud security solution, Zero Trust Exchange, driven by the ongoing digital transformation across organizations and the growing popularity of hybrid work, is likely to have been a key catalyst. The growing adoption of Software-Defined Wide Area Network (SD-WAN) solutions might have acted as a primary driver in the fiscal third quarter. Per the latest Future Market Insights report, the market size for SD-WAN solutions and products is expected to reach $80.91 billion by 2034 from $5.36 billion in 2024, witnessing a CAGR of 31.6%. As only a select number of vendors offer security and SD-WAN solutions, Zscaler has been gaining from the increasing opportunities in this space. The company's partnerships with VMware and Silver Peak have enabled it to secure SD-WAN deliveries. This is expected to have aided Zscaler's fiscal third-quarter performance. ZS' existing core products, mainly the Zscaler Internet Access and Zscaler Private Access, have been driving customer retention. The addition of new features to its Zero Trust Exchange, such as Cloud Access Security Broker, Cloud Browser Isolation, Cloud Protection, Zscaler Digital Experience and Cloud Security Posture Management for software-as-a-service applications, is expected to have driven its product portfolio expansion and customer acquisition. Generative AI and Agentic AI are also acting as a growth pillar for Zscaler. The company now serves 14 out of 15 U.S. cabinet-level agencies. This is likely to have provided stability to Zscaler's top line in the to-be-reported quarter. Our model estimates for third-quarter revenues from Channel Partners and Direct Customers are pegged at $588 million and $77.4 million, respectively. We expect the remaining performance obligation at the end of the quarter to be approximately $4.65 billion. However, as customers scrutinize large deals more closely, with continued tight IT budgets, Zscaler faces longer deal cycles. To counter this, Zscaler is growing investments to improve sales and marketing (S&M) capabilities and higher research and development (R&D) costs, which might have weighed on the company's fiscal third-quarter bottom line. ZS Price Performance & Stock Valuation Zscaler's shares have gained 40.9% year to date, outperforming the Zacks Security industry's growth of 16.9%. The stock has also outperformed its peers in the cloud-based security solution space, such as Palo Alto Networks PANW, CrowdStrike Holdings CRWD and CyberArk Software CYBR, which have risen 2.7%, 33.2% and 14.5%, respectively, in the same time frame. Now, let's look at the value Zscaler offers investors at the current levels. ZS stock is trading at a discount with a forward 12-month P/S of 12.79X compared with the industry's 14.21X, reflecting an undervaluation. Investment Thesis for Zscaler Zscaler is benefiting from the rising demand for cybersecurity solutions due to the slew of data breaches. The increasing demand for privileged access security in digital transformation and cloud migration strategies is a key growth driver. A strong presence across verticals, such as banking, insurance, healthcare, public sector, pharmaceuticals, telecommunications services and education, safeguards it from the negative impacts of ongoing macroeconomic headwinds. Portfolio expansion through acquisitions like Avalor, Canonic Security and ShiftRight is praiseworthy. However, Zscaler faces intense competition from other established cybersecurity players, including Palo Alto Networks, CyberArk and CrowdStrike. Zscaler Internet Access and Private Access face competition from Palo Alto Networks Prisma Access, Prisma SD-WAN, CrowdStrike Falcon Zero Trust, CyberArk Secure Web Sessions and CYBR Identity Security Platform. To survive in the highly competitive cybersecurity market, Zscaler is continuously investing in broadening its capabilities. Over the past few years, Zscaler has invested heavily to enhance its S&M capabilities, particularly by increasing the sales force. Unfortunately, its aggressive investment in S&M and R&D might weigh on its near-term profitability. Conclusion: Hold ZS Stock for Now While the long-term prospects for the company remain bright, the near-term challenges associated with its profit growth warrant caution. Therefore, we believe that it's prudent to avoid making new investments in the stock for now. For existing shareholders, holding on to Zscaler stock is the best course of action, as the long-term growth drivers are still firmly in place. Zacks Names #1 Semiconductor Stock It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom. With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028. See This Stock Now for Free >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Palo Alto Networks, Inc. (PANW): Free Stock Analysis Report CyberArk Software Ltd. (CYBR): Free Stock Analysis Report Zscaler, Inc. (ZS): Free Stock Analysis Report CrowdStrike (CRWD): Free Stock Analysis Report
