Daily Stock Opinions and Ratings

Opinions

Jim Cramer - Mad MoneyZscaler Inc.ZSBUYFeb 23, 2024

It reports Thursday. It reports consistently in a sector that's disappointed lately.

Jim Cramer - Mad Money

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$235.21

Stock price when the opinion was issued

$237.83

As of Oct 30, 2026. Market Open.

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BUY

She just bought Zscaler, which is up only 11% this year. It trades at a discounted valuation of 50% EV to sales. A big player in this space, they'll grow 25% in their TAM (Total Addressable Market) and margins will expand 27-30%. This will play catch-up at some point. Like the growth and valuation.

DON'T BUY

Is down 30% today because they can't assure that their products can offer identity protection to the AI agents--they can be disrupted.

COMMENT

Down 30% today. The higher capex outlook isn't caused by Zsclaer buying more components, but the higher cost of them. She worries about higher capex from these higher costs for Zscaler and other companies. Micron can charge more, but their customers will pay more.

WEAK BUY

Is -38% in Q1 and one of the worst performers on the S&P. The street expects AI to displace cybersecurity. This is dead wrong.

BUY

Is growing annual recurring revenues in enterprise. There remains strong demand for cybersecurity.

BUY ON WEAKNESS

He just added more shares following earnings on Wednesday. Shares fell 10%, but what was the market looking for? ZS reported 26% growth in annually recurring revenue, and beat across the board. They've re-done their sales force the past year and focused on their Z Flex model platform--firing on all cylinders. Trades at a slight premium, but they are securing 45% of the S&P 500. Shares have fallen with entire sector where it really doesn't belong. An opportunity.

BUY

They just reported a super quarter: top and bottom line beat and raised their full-year revenue forecast. Shares jumped nearly 10% for two days, but still below its 2021 all-time high.

BUY

Cybersecurity, connects the right user to the right app on any network. Part of the AI revolution. 12-month price target of $245, great runway in front.

BUY

Hit its 52-week high today and probably the most-loved stock in this sector. Demand for cybersecurity is strong now as companies seek online protection.

BUY

A May 8 pre-announcement sent shares up 20% that the quarter is going much better than expected and boosted their guidance. Shares have soared about 50%. Today, they reported a beat and even better guidance

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TOP PICK

Zscaler accelerates digital transformation so customers can be more agile, efficient, resilient, and secure. The Zscaler Zero Trust Exchange protects thousands of customers from cyberattacks and data loss by securely connecting users, devices, and applications in any location.

DON'T BUY

This cloud computing company saw shares plunge over 15% today after earnings: delivered a sold earnings beat, higher than expected sales up 63% YOY and inline guidance for the current quarter. They also raised their FY forecast. However, the beats were lower than in previous quarters. Trades at 36x sales and the market rejects such high-flyers. This could go lower though he doesn't know what to do with this stock.

BUY

Good company, has done well. Likes the space a lot. Everything's so connected, it raises the importance of having good cybersecurity. Cost of data breaches continues to go up.

PARTIAL SELL

Rich. He's taken profits. Price target of $270, and it's trading at $280 today. Benefiting from users outside of the traditional corporate network. A favourite because it combines SaaS and cybersecurity. If you have it, write some calls. Keep it on your radar if gets to the $200-220 level.

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