Zscaler Inc. (ZS-Q)

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.

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

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.

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

Cybersecurity stocks--despite several recent major hacks--have gone nowhere, because of their high valuations by any metric. In mid-April they topped and sold off, but are back to their April highs, including Palo Alto and Zscaler. The bigger picture is that what happens if cybercriminals go after the banks or exchanges? Yes, these stocks are expensive, but you want to buy them, such as Palo and Zscaler. Cyber attacks aren't going away, but will get worse.