Should I Buy Zscaler (ZS)? Finance YouTuber Analysis

Joseph Hogue identifies Zscaler as one of his top five cybersecurity stocks, recommending it as a direct investment after using the CIBR ETF as a research tool. He highlights its strong past performance, outperforming the thematic ETF, and its position as a leader in the essential cybersecurity theme, noting his strategy of buying dips to manage risk.

“The five cyber security stocks I like best. Crowdstrike holdings ticker CRWD. Palo Alto Networks P&W, Fortnet, FTN, Octa, OKTA, and Zcaler ticker ZS have returned an average 151% over the last 5 years versus an 87% return on that thematic ETF.”

The YouTuber bought more Zscaler shares on a 33% drop, believing management's conservative forecast for 17% year-over-year earnings growth is overly cautious. He sees cybersecurity as a favorite theme, driven by AI demand, and Zscaler is one of the least expensive stocks in the industry.

“I own the stock and in fact bought another 120 shares on the drop because I think management is just being overly conservative with that forecast.”

The YouTuber likes Zscaler for its valuation, being one of the least expensive in the cybersecurity group on an adjusted P/E basis. He believes fears about AI threatening its business model are overblown, given strong growth forecasts, despite management's past issues with managing expectations.

“I like Zcaler and will be picking up more shares ahead of this earnings this week but it's probably the most at risk if AI is going to threaten the cyber security business model.”

The YouTuber includes Zscaler in his cybersecurity holdings, suggesting it has high return potential but also higher risk. He maintains a positive outlook on cybersecurity stocks due to increasing demand driven by AI.

“Zcaler and Octa may have the highest return potential, but are also the higher risk.”

The YouTuber is buying shares of Zscaler, citing its position as a cybersecurity stock that has rebounded from AI fears. He previously highlighted cybersecurity stocks as a good investment.

“I also highlighted cyber security stocks in that video and why I'm still buying shares of Palo Alto Networks P&W, Crowdstrike Holdings, CRWD, Fortnet, FTNT, and Zcaler ZS on the rebound from those AI fears.”

The YouTuber is adding to positions in Zscaler, arguing that fears of AI replacing cybersecurity companies are overblown. He expects strong revenue growth to continue, and that upcoming earnings reports will confirm this, leading to a bounce in the stock.

“I own and am adding to positions in Zscaler, ticker ZS. Now, the trigger here in these stocks is going to be the quarterly earnings reports like we're coming into right now.”

The YouTuber advises holding Zscaler, despite it being the hardest hit among his cybersecurity holdings, due to what he perceives as irrational fears about AI's impact. He argues that AI will create more cybersecurity challenges, driving demand for Zscaler's services. He sees the current low valuation as an opportunity for investors to re-enter the stock as revenues continue to grow.

“Investors are going to come back into these shares and bid them up from these crazy low valuations.”

The YouTuber recommends Zscaler, which has fallen 59% from its peak due to misplaced fears that AI will negatively impact cybersecurity vendors. He argues that AI will actually boost cybersecurity revenue, citing expected revenue growth and a current price-to-sales ratio at a 60% discount to its 5-year average, suggesting significant upside.

“At a market cap of $22 billion, that means the shares now trade for just 6.75 times on a price to sales basis. A 60% discount to the average 5-year valuation, back up to even 12 times sales, would take Zscaler up 78% to $246 per share.”

The YouTuber is buying Zscaler due to its significant discount (61% below its 5-year average valuation of 17.2x P/S) and strong competitive advantages in high-growth cybersecurity segments like cloud and SASE. Despite a 24% revenue growth, which is strong for the sector, its current valuation makes it one of the cheapest among its peers when adjusted for growth.

“So Zscaler hard to pass up on these numbers on this discount as well as that competitive advantage and it is definitely one I'm buying more more of here in April.”

The speaker identifies Zscaler as another favorite cybersecurity stock, trading at a significant discount (one-quarter the price-to-sales of CrowdStrike). Despite increased competition in zero-trust, Zscaler is adapting its technology to secure AI agents, a critical and growing need. While it hasn't demonstrated its potential as much as CrowdStrike, its past track record in zero trust suggests it could be a long-term winner.

“I think there's a pretty good reason to expect that they will end up being one of the big winners in the space long term.”

The YouTuber is buying Zscaler on the dip, despite its 52% plunge, arguing that fears of AI replacing cybersecurity are unfounded. He states that AI is actually increasing the attack surface for hackers, leading to a boom in AI-generated attacks, which will translate to higher revenue growth for cybersecurity firms. Zscaler is expected to post 20%+ revenue growth and strong double-digit earnings growth, and while not cheap at 38x earnings, it's significantly lower than its 90x valuation last October.

“And against those fears that AI could replace cyber security companies, we've actually seen AI increasing the attack surface for hackers and a boom in the number of AI generated attacks.”

The YouTuber includes Zscaler as a favored cybersecurity stock, part of a broader theme of increased spending on cybersecurity due to escalating global cyber threats. He suggests that all major cybersecurity names are good buys.

“also like Palo Alto Networks, Fortnet as well as Zscaler and Octa. So I own most of the big names in this. Okay. I think you don't necessarily have to go with any one particular name. I think all of these are good.”

The YouTuber recommends buying Zscaler on the dip, despite its recent earnings not 'wowing' the market. He argues that AI tools won't replace the comprehensive services provided by industry leaders like Zscaler. He advises accumulating shares monthly for long-term holding.

“These two stocks continue to be my favorites in the space along with Palo Alto Networks PW and Fortnite FTN. Now, these aren't must buy cheap territory. But instead of trying to time that rebound, I just put them a little bit more in each month, put them on a monthly buy list, and hold long-term.”

Kieran Francis picks Zscaler, emphasizing cybersecurity as a critical trend. He highlights Zscaler's zero-trust security model, which is essential for modern distributed cloud environments. The company is riding the cloud market's 20% annual growth, beating it handily, and trades at a forward price-to-sales ratio of 8, significantly cheaper than competitors.

“Zscaler offers something called zero trust security. Security used to be all about firewalls. It's like a moat. You keep all the bad guys out and you stay safe inside. But nowadays with the cloud, there is no wall anymore.”

Joseph Hogue added to his Zscaler (ZS) position, viewing the stock as being in 'value territory' after a significant sell-off. He expects strong 23% revenue growth for the year and believes AI will be an upside catalyst for cybersecurity stocks, potentially boosting revenue. He sees the current dip as an opportunity to buy into a company with solid revenue growth.

“Zscaler posts solid revenue growth and now is in value territory as well. and I took advantage of the sell-off to add $25,000 to my investment last week”

The YouTuber identifies Zscaler as a high-conviction buy, noting its 49% drop from its peak as an overreaction. He highlights its leadership in zero-trust architecture and AI security, combined with a low valuation relative to its 20%+ sales growth. He believes an inflection in profitability will drive the stock significantly higher, with analysts projecting an 82% average upside.

“Folks, this company is leading with its zero trust architecture and a really strong approach in that AI security. Zscaler has the second lowest valuation in our group on a 20% plus sales growth.”

The YouTuber suggests buying Zscaler, noting its 47% drop from its peak has made it more attractive. He highlights its leadership in cybersecurity with its zero-trust architecture, strong growth outlook, and relatively inexpensive valuation on a price-to-earnings basis adjusted for growth, arguing that cybersecurity spending is essential and cannot be cut.

“Zcaler, ticker ZS, is now down 47% from its peak last year as these cyber security names come off expensive valuations and sell off with the rest of tech.”

Zscaler is a pure-play cybersecurity company focused on cloud and SASE growth, which are among the fastest-growing segments in the industry. The analyst is buying it to capitalize on the dependable growth in cybersecurity spending and its strong position in these key areas.

“I like Palo Alto for its broad participation as well as leadership in growth areas, but I'm also buying Crowdstrike for its endpoint and agentic segments as well as Zcaler for cloud and SASSE growth.”

The analyst recommends Zscaler due to its strong position in high-growth cybersecurity segments like SASE and cloud security, which are experiencing rapid revenue growth. He highlights its competitive advantage with a zero-trust model, high revenue growth (21%), and a relatively inexpensive valuation compared to peers when adjusted for growth, suggesting the stock price could double.

“Zcaler has the second highest revenue growth at 21% and it's one of the least expensive on a PE valuation adjusted for its growth. This stock price could double here and it would still be less expensive than Crowdstrike or Cloudflare.”

The YouTuber is buying Zscaler due to its leadership in the cybersecurity theme, which is identified as a long-term growth area. The stock is part of the First Trust Cybersecurity ETF (CIBR) holdings, indicating its prominence in the sector.

“Within the group here, I'm buying Palo Alto Networks, ticker PW, Crowdstrike Holdings, CRWD, Octa Inc., ticker Okta, Fortnet, FTN, and Zcaler ZS on their leadership in this theme.”

The YouTuber is buying Zscaler due to its strong 26% revenue growth and earnings beat, despite a recent market sell-off. He highlights its leadership in zero-trust security and its valuation entering 'value territory' on an adjusted earnings growth basis, making it an attractive buy after the dip.

“I'm holding on to all of those I already own, but also using the dip to load up on shares of Zscaler, ticker ZS, and Fortnite, ticker FT&T.”

The YouTuber identifies Zscaler as part of his favorite long-term cybersecurity theme and states he would pick up more shares on any dips. He emphasizes that cybersecurity is an 'unstoppable theme' and investors should be involved.

“And I'd be picking up more of these on any dips. Folks, this is a long-term unstoppable theme and you want to be involved in these cyber security names.”

The YouTuber would buy Zscaler on any dips, despite its expensive valuation and expected weakness in earnings due to competition. While cybersecurity remains a favored growth theme, high expectations have led to stock declines. Zscaler is expected to post 20% sales growth, and some fear is already priced in, making dips an opportunity.

“still worry about a sell-off but would be buying on any dips.”

The YouTuber recommends Zscaler, highlighting its revolutionary cloud-native, zero-trust security architecture and dominance in cloud security and SASE with significant market share. He points to its ability to inspect trillions of transactions daily, providing unique threat insights, and its strong cloud ARR growth. Despite its premium valuation, he believes its disruptive potential and strong positioning justify the investment.

“Back to our list of stocks to buy though and one of my favorites Zcaler ticker ZS which revolutionized the industry and is up 74% this year alone.”

The analyst holds Zscaler as one of his favorite cybersecurity stocks, noting its 22% gain in the past five days after a strong earnings report with 23% revenue growth. He believes the company is pulling away from competitors, indicating the cybersecurity threat is large enough for multiple players, even though he prefers Crowdstrike as the best of breed.

“What I really like here is the company was able to post a good quarter when we've heard so much pessimism from others like Palo Alto and Sentinel 1 telling me Z is pulling away from the pack.”

The YouTuber owns Zscaler but is not adding shares currently due to its high valuation (16x price-to-sales) and recent disappointing earnings from a competitor. He indicates he might add if there's a significant sell-off after its upcoming earnings report.

“I'm not adding shares just yet, but might if we get a big sell-off on the earnings.”

The analyst includes Zscaler as a core holding within the cybersecurity theme, which is considered a must-own for the next decade due to the increasing frequency and sophistication of cyber attacks. The sector's strong tailwinds support continued investment in companies like Zscaler.

“Within the theme, I own both of these along with Zcaler, ticker ZS, and Fortnite, FT&T. Showing you the bigger picture here with the sector spider sector tracker.”

The analyst is buying Zscaler, attracted by its disruptive zero-trust exchange architecture and leveraging AI for real-time threat intelligence. A key catalyst is its partnership with CrowdStrike, which the analyst believes will drive stronger growth than currently reflected in market expectations. The analyst has a price target of $278.

“I think that strength in zero trust exchange and the partnership with crowd strike propels its Revenue to $3.3 billion in 2026 for my price target of $278 a share on a 13x price to sales basis and a 42% upside.”

The YouTuber recommends Zscaler due to the massive growth in the cybersecurity market, driven by increasing malicious programs and AI-transformed threats. Zscaler's first-mover advantage in zero-trust cloud security, strong revenue growth, and strategic partnership with CrowdStrike position it as a leader in a high-growth industry.

“Z scale changed Legacy cyber security from a network and firewall architecture to a zero trust model in the cloud that first mover disruption accounts for its amazing Revenue growth here I also like it recent tie up with crowd strike the two are launching a new set of AI and zero trust Integrations into crowd strikes Falcon software to coordinate their threat sharing detection and response.”

The YouTuber plans to add more Zscaler, praising its disruption of legacy cybersecurity with a zero-trust cloud model and strong 43% annualized growth. He also notes its relative valuation compared to peers and a strategic tie-up with CrowdStrike to integrate AI and zero-trust into the Falcon software, creating a formidable combined offering.

“Zscaler changed Legacy cyber security from a network and firewall architecture to to a zero trust model in the cloud that first mover disruption accounts for its amazing Revenue growth”

The YouTuber is buying Zscaler as part of his cybersecurity theme, driven by the 'ever increasing demand for cyber security protection.' He views it as a beneficiary of ongoing trends in digital security.

“I'm buying zscaler poo Alto networks and crowd strike on that ever increasing demand for cyber security protection”

The YouTuber considers Zscaler a growth play in the cybersecurity space, acknowledging its relatively expensive valuation but highlighting its strongest revenue growth among its peers. He believes this indicates a competitive advantage that will translate into increased market share, sales growth, and a higher stock price in the long term.

“zscaler and crowd strike are my growth plays here in the space relatively expensive but that strongest Revenue growth among the group tells me the companies have that competitive Advantage”

The YouTuber is buying Zscaler again for a long-term position, despite a recent disappointing outlook. He highlights a new partnership with CrowdStrike, integrating their zero trust exchange with Falcon software, which he believes will solidify Zscaler's leadership and growth by creating an unbeatable combined offering.

“The two are launching a new set of AI and zero trust Integrations into crowd strikes Falcon software to coordinate threat sharing detection and response now zscaler zero trust exchange and crowd strikes Falcon software it's each of the companies competitive advantage in the industry and so combining them I don't think there's another company that can can beat that.”

The YouTuber is aggressively buying Zscaler due to its first-mover disruption in zero-trust cloud security, strong revenue growth (54% annualized over three years), and a new partnership with CrowdStrike. This collaboration is expected to solidify its market leadership and growth, making it a top pick for long-term growth in cybersecurity.

“I've been aggressively buying zscaler and crowd strike in my own portfolio and cyber security is my favorite growth theme over the next decade.”

The YouTuber is buying Zscaler, citing its disruptive zero-trust model in cloud security and strong revenue growth (54% annualized over 3 years). A recent partnership with CrowdStrike is expected to solidify its leadership and growth, making it a strong long-term play despite a recent disappointing outlook.

“I've talked about zscaler ticker Zs as one of my favorites since starting to buy it in May of this year I've now got a position of 300 shares and up 133% so far but this one has a long way to go.”

The YouTuber recommends Zscaler, a top holding, for its pioneering zero-trust cybersecurity model and impressive revenue growth, serving 40% of Fortune 500 companies. Despite a recent stock drop due to a conservative outlook, its partnership with CrowdStrike and expected 20% annual growth make its current 12x price-to-sales valuation attractive, especially in the strong cybersecurity theme.

“Zscaler changed to Legacy cyber security from a network and firewall architecture to a zero trust model in the cloud and that first mover disruption accounts for its amazing Revenue growth.”

The YouTuber is buying Zscaler due to its recent price weakness and its strong position in the cybersecurity theme. He highlights the new AI and zero-trust integrations with CrowdStrike's Falcon software, believing their combined competitive advantage is unmatched. Zscaler is also considered one of the least expensive cybersecurity stocks based on price-to-revenue-to-growth, with sales expected to grow over 20% next year.

“Z Skiller zero trust exchange and crowd strikes Falcon software are each company's competitive advantage in the industry and combining them I don't think there's another company that can beat that... I analyzed cyber security stocks recently in a video and found these two are the least expensive in terms of price to revenue to growth both expected to grow sales by 20% plus over the next year now I've got 300 shares of crowd strike at $277 a share and 300 zscaler at $173 per share buying both after that recent price weakness”

The YouTuber recently added to his Zscaler position, noting it became the cheapest among his analyzed cybersecurity stocks after a post-earnings dip. Despite the fall, he highlights its strong 20% annual revenue growth and considers it a good value when adjusting price-to-revenue for growth.

“picked up more shares of zscaler because it is the cheapest uh cheapest cyber security stock right now and still has great growth 20% a year growing Revenue”

The analyst doubled their position in Zscaler, calling it the cheapest cybersecurity stock after a 17% post-earnings dive. Despite a disappointing outlook, revenue is still expected up 20% this year, leading to an attractive growth-adjusted valuation of 0.47x price-to-sales.

“I use the sell off as an opportunity to double my position adding another 150 shares in this long-term holding”

The analyst is buying Zscaler shares, citing cybersecurity as his favorite theme due to strong growth driven by IoT and AI. He believes the demand for cybersecurity is pervasive and will not change, making it a confident investment.

“cyber security is easily my favorite theme right now not only for its strong growth but also for the confidence in returns behind all the tech changes the internet of things and artificial intelligence is a booming and pervasive demand for cyber security that's not going to change and I'm buying shares of zscaler”

Hogue is investing heavily in Zscaler, citing the massive growth trend in cybersecurity driven by a 20-fold increase in malicious programs and the advent of AI. He highlights Zscaler's competitive advantage in taking market share from legacy providers and its strong sales growth of 181% over the last three years, particularly from large customer orders.

“Z scaler competitive Advantage is taking market share from the Legacy cyber security providers built on that Hardware delivery the company has grown sales by 181% over the last 3 years much of it those large customer orders of a million plus the kind of customer Revenue the company can count on every single year.”

The YouTuber is taking the opportunity to buy Zscaler shares after a recent sell-off in the cybersecurity theme. He views cybersecurity as a favorite growth trend for the next decade, expecting Zscaler to post over 25% revenue growth and 35% annualized earnings growth in the coming years, despite potential warnings about enterprise budget consciousness.

“I'm taking the opportunity to pick up shares of my three favorites in this space zscaler Zs crowd strike crwd and paloalto networks panw as cyber security continues to be one of my favorite growth Trends over the next decade despite any warnings we hear hear here for management”

The YouTuber is buying Zscaler, a cloud-delivered cybersecurity company, on its long-term trend, noting its current valuation is more attractive after a recent sell-off. He highlights the increasing cybersecurity budgets, the advent of AI creating new threats and demand for protection, and Zscaler's strong sales growth (181% over 3 years) by taking market share from legacy providers.

“zscaler ticker Zs has come down from its peak this year along with the rest of cyber security but I'm buying more on that long-term trend.”

The YouTuber recommends Zscaler, a cloud-delivered security software company, highlighting its advantage in shifting the industry away from hardware-based solutions. He notes its strong sales growth, particularly from large customer orders, and considers it a better buy on valuation after a recent sell-off.

“also in this theme I recommended zscaler ticker Zs in 2019 on its advantage in changing the industry the company is a cloud delivered security software company focusing on large Enterprise services”

The analyst suggests buying Zscaler at its current price for a great long-term return, despite a recent drop due to management's outlook for lower revenue growth. While the slowdown in growth may lead to lower valuation multiples, the company remains a leader in the strong cybersecurity trend, indicating a positive long-term outlook.

“the long-term term Outlook is still such that investors should think about picking up the stock at this price for a great long-term return”

The analyst recommends Zscaler due to its strong growth potential in cloud-delivered security, taking market share from legacy providers. The company has shown significant sales growth, especially in large customer orders, despite currently negative operating margins due to heavy R&D investment.

“Even at this point though I don't think you can ignore the growth potential that's because cloud is really the key here and zscaler main target is taking that market share from those Legacy cyber security providers built on that Hardware delivery.”

The analyst likes Zscaler for its disruptive zero-trust cloud security model, which has driven significant revenue growth and market leadership. Despite GAAP operating losses due to aggressive spending on marketing and R&D, it is profitable on a non-GAAP basis, reminiscent of Amazon's early growth strategy.

“but I like the stock again on its disruptive approach to cyber security”

The analyst likes Zscaler due to its strong growth prospects, with expectations for doubled earnings and 35% sales growth. However, he notes its high valuation at 15.4 times price to sales. He would consider buying shares on any price drop, particularly after its upcoming earnings report, to get a better valuation.

“I would be picking up the shares on any drop but I want to wait for a little bit better price valuation than this one”

The YouTuber previously recommended Zscaler but now finds its valuation too high at 23 times price-to-sales, despite its strong growth and well-run company status. He would consider buying if the price-to-sales ratio drops to 10-15x, and would add more below 10x.

“it's still just it's too difficult for me to to recommend anything trading at 23 times on a price to sales basis so this is one one of them I would watch... if it gets back down into you know 10 to 15 times price to sales territory I might I might start buying into it again and definitely down if it ever gets down below 10 times on a price to sales basis I will I'll add more shares there”