This Cloud-Based Security Stock Broke Out to a 14-Month High

• Zscaler (ZS) on Monday rallied to a new 14-month high.
• After posting a 6-month low on April 7, 2025, Zscaler has rallied sharply by an overall 23% in the past 3 weeks.
• Zscaler is benefiting from the themes of AI, cloud, digital payments, and cybersecurity.

Company Description:

Zscaler (ZS) is one of the world’s leading providers of cloud-based security solutions. Zscaler offers a full range of enterprise network security services, including web security, internet security, antivirus, vulnerability management, firewalls, and control over user activity in mobile, cloud computing, and Internet of Things environments. The company has a market cap of $34 billion and operates globally.

Today’s Context:

Zscaler saw support Monday after BNP Paribas Exane upgraded the company to “Outperform” from “Neutral” and raised its price target to $260, implying an 18% rally from current levels. The BNP analyst said “Sales productivity has finally turned a corner and is improving” and that Zscaler is “now on the cusp of top-line growth accelerating to mid-20%.”

What I’m Watching: 

Zscaler on Monday closed 1.99% higher, adding to last week’s 7.3% rally and posting a 14-month high. I found today’s stock by using Barchart’s New Highs & Lows page and selecting stocks that have new 52-week highs. I then viewed the stocks on the list with the Flipcharts feature. 

What Comes Next: 

The 14-month high signals the possibility of further gains, although it always pays to watch for any temporary downside correction. A downside correction could be used for an entry point.

Key Technical Levels for Zscaler Interactive: 

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. These technical indicators form the Barchart Opinion on a particular stock.

• The Parabolic Time/Price (50) trading system issued a “Buy” signal on April 14 and has been long since then.
• Barchart’s Overall Average Opinion is an 88% “Buy.”
• All the Barchart Opinion indicators were a “Buy” as of Monday, April 28, except the 20-50 day moving average crossover system.
• Zscaler has been above the 100-day moving average since April 23, 2025.

Analyst Ratings on ZS Stock: 

• Wall Street analysts have a consensus rating of a “Strong Buy” with a rating of 4.45 out of 5, and price targets between $195 and $270.
• The average price target of $238.05 is above Monday’s close of $219.86, suggesting either the stock is slightly overpriced or that analysts have yet to catch up with the stock’s potential.

Why It Matters: 

A breakout to a major new high can suggest that a stock has underlying strength to push the stock even higher, although caution is always warranted.

Want more insights like this? Stay tuned for tomorrow’s Chart of the Day!

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 and reevaluate your stop losses at least on a weekly basis.