Zscaler Stock Rebounds Off Lows as Traders Position Ahead of May 26

• Zscaler (ZS) shares have put together a massive short-term recovery, surging roughly 50% since early April. But that still puts it 50% below its 2025 all-time high.
• The stock currently carries a 25% “Sell” overall average from Barchart Opinion’s composite indicator, but its near-term price action tells a far more bullish story. So does the fact that this same measure was 56% “Sell” one week ago and 100% “Sell” one month ago. The trend is ZS’s friend.
• ZS went to Trend Seeker “Buy” status on May 8, the first time that has occurred during 2026.
• Despite macro headwinds, growing adoption of zero-trust architecture has prompted a major short-covering rally ahead of ZS’s May 26 earnings release.

Today’s Featured Stock

Valued at $28.1 billion, Zscaler (ZS) is a cloud-based security platform that provides automated zero-trust exchange solutions protecting enterprise data and users globally.

What I’m Watching

I found today’s Chart of the Day by using Barchart’s powerful screening functions to sort for stocks with notably improving technicals, a combination of momentum, strength, and direction. I then used Barchart’s Flipcharts feature to review the charts for timely opportunities. ZS checks those boxes.

ZS has rallied from its deep 52-week low around $115 just 5 weeks ago, in early April. Its 20-day moving average is strong, and its 50-day moving average just turned positive this month. The PPO indicator has recently undergone a bullish crossover in both daily and weekly time frames, a sign of increasing momentum. 

Following a steep price decline of more than 60% which began last November, driven by software sector growth fears, Zscaler has successfully broken out of its bottoming formation.

Barchart Technical Indicators for Zscaler

Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report.

• 24% “Sell” Barchart Opinion, but the trend is the key. And the trend is decidedly up over the past month.
• Trend Seeker “Buy”: This proprietary trend indicator recently flipped to a “Buy” signal.
• Over the past five years, that same signal has produced 19 “Buy” signals with a 75% profit, with an average holding period of 42 days per trade.
• Support Levels: Initial short-term support has moved up to $147.43, with critical floor support waiting at $142.73.

Don’t Forget the Fundamentals

• $28.1 billion market capitalization.
• 9.25x price-sales ratio.
• 11.25x price-book ratio.
• 5-year revenue growth of 520%.
• 5-year earnings growth of 77%.

Analyst and Investor Sentiment on Zscaler

• Wall Street Analysts: A consensus of 45 analysts surveyed by Barchart rate ZS a “Strong Buy,” with 36 issuing “Buy” or “Strong Buy” ratings.
• Price Targets: 12-month targets display a cavernous range, no surprise for a stock that has gyrated as this one has. Analyst targets range from a low of $140.00 to a high of $320, leaving the average consensus at around $225.

The Bottom Line on Zscaler

Zscaler is currently executing a textbook technical reversal, driven by sector-specific rotation into premium cyber defense platforms ahead of its fiscal Q3 earnings report. The company's recent DoD Impact Level 5 authorization signals accelerating momentum within public-sector enterprise pipelines.

While a trailing EPS deficit demands flawless operational execution, the stock’s breakout above its 20-day and 50-day moving averages suggests a highly bullish near-term path back toward its historical trading ranges. Next week’s earnings (May 26 after market close) will go a long way toward settling the debate between bulls and bears on ZS.

Additional disclosure: The Barchart Chart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance.