While latest earnings were mixed, Real Money’s Stephen ‘Sarge’ Guilfoyle sees this company in a strong position as companies scramble to boost data protection.
Russia’s invasion of Ukraine has put cybersecurity at the forefront as the risk of hacking has increased exponentially for government entities and companies, especially those involved in the energy industry.
Cybersecurity stocks have risen in anticipation of more threats of hacking to critical energy infrastructure as a retaliation measure for U.S. led sanctions on Vladimir Putin’s regime.
But one key player in the group saw its shares tumble recently after reporting its latest financial results.
Real Money Columnist Stephen ‘Sarge’ Guilfoyle, is not scared, at least not yet.
“Zscaler (ZS) – Get Zscaler, Inc. Report fundamentals easily pass the Sarge test,” Guilfoyle wrote recently on Real Money. “Problem is GAAP EPS printed at a loss of $0.71 per share, which fell short of expectations, and full year guidance, while solid, and better than official consensus view, appeared a little light versus whispers that may have been for more.”
Zscaler did end the quarter with cash levels of $1.621 billion and current assets of $1.99 billion, which both rose by over $100 million over 12 months.
The company’s current liabilities rose to $836 million due to an increase in deferred revenue and the ratio of nearly 2.4 is quite healthy, Guilfoyle wrote.
Five sell-side analysts have made recommendations since Zscaler’s earnings with four “buy” ratings and one “hold” rating.
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