Zscaler Operating Well But Diluting Too Much
Jun 3, 2024
Zscaler's Q3 shows a firm continuing to operate well, with 32% revenue growth, 30%+ forward growth metrics, improved margins, and a stable balance sheet. The firm continues to be a leader in "zero trust" security access service edge (SASE) cybersecurity offerings. My one gripe is continued rapid share growth, with diluted shares increasing another 6% over last year. Incorporating the latest results and updating the model, the previous fair value looked a bit high and I'm reducing it to $151.
Follow @GreenDotStocks
Information contained on this website represents only the opinions of the author and should not be used as the sole basis for investing decisions. By using this site, you agree to all statements in the Site Policy.
Watch List
| SE | 54.68% |
| PINS | 0.79% |
| MA | 8.36% |
| CMG | 78.42% |
| GOOG | 39.63% |
| PSTG | 10.62% |
| SEMR | -4.87% |
| INTU | 27.32% |
| SMAR | 24.31% |
| GTLB | 38.11% |
| CRWD | 62.86% |
| VEEV | 12.04% |
| WDAY | 8.55% |
| SNOW | -7.77% |
vs. Fair Value Estimates
Buy List
| MSFT | -25.00% |
| ODD | -29.90% |
| ASR | -29.86% |
| HRMY | -51.78% |
| YOU | -45.33% |
vs. Fair Value Estimates
Hold List
| FLYW | 16.16% |
| CELH | -13.41% |
| TOST | 49.12% |
| CPNG | 2.00% |
| HIMS | -22.18% |
| PAYC | -24.21% |
| MNDY | 23.88% |
| GLBE | 10.02% |
| ZS | 20.32% |
| V | -14.85% |
| ADSK | 17.05% |
| NOW | 41.49% |
| ABNB | -19.01% |
| MELI | -21.72% |
| FTNT | -0.59% |
| TEAM | 9.58% |
| ADBE | -15.91% |
vs. Fair Value Estimates