During the start of May, Zscaler (ZS) stock initiated its bullish journey and has almost doubled in value. However, the move was halted as soon as ZS stock price surged above $160 due to the strong presence of bears.
On August 1, 2023, Zscaler stock price touched the $164.29 level and faced heavy rejection. The stock then retraced to form a support near $132. After the formation of support, the price regained bullish momentum in order to retest the resistance level of $164.
Zscaler stock has been printing bullish candles for the last five days and the release of the fourth-quarter report has also fueled the bullish momentum. Currently, ZS stock is on the verge of breaking above $164 and breaking the yearly high of $164.29.
If bulls can push the price above $164, the stock price might head toward the next resistance level of $184. On the other hand, if the stock price faces rejection, it might consolidate and melt toward a minor support of $139.50.
Q4 Financial Report Analysis
Zscaler reported quarterly earnings of $0.64 per share, crushing the consensus estimate of $0.49, a surprise of 30.61%. The prior year’s quarter had an earning per share of $0.25. Over the last twenty quarters, the company has been successful in beating the consensus estimates on both the top and bottom lines.
Zscaler posted a revenue of $455.01 Million for the reported quarter, beating the consensus estimate of $430.39 Million. The revenue is up $318.1 Million from a year earlier.
For the current quarter, ZS expects non-GAAP earnings per share between the range of $0.48 and $0.49. The revenue is expected to be between $472 and $474 Million. For the fiscal year 2024, the cloud-based security provider expects an EPS of $2.20 to $2.25 on revenue of $2.05 Billion to $2.07 Billion.
Will ZS Stock Break the Yearly High?
The stock price has surged above 20, 50, 100, and 200-day exponential moving averages, suggesting strong bullish momentum. Chaikin money flow (CMF) score has also climbed above the 0 mark and currently stands at 0.21, indicating strength in the market.
The relative strength index has crossed the 60 mark and stands at 66.31, implying bullish momentum in the stock price which supports the price action. RSI will soon enter an overbought zone if bullish momentum prevails which indicates the possibility of a short-term pullback.
Zscaler stock price is currently on the verge of a breakout but traders should wait for a candle to close above $164 for a bit of confirmation. ZS stock also stated that it expects further growth in the fiscal first quarter following beating estimates in the fourth quarter.
- Major support: $139.50 and $132
- Major resistance: $164 and $184
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