One Analyst Says Zscaler Is the Cybersecurity Stock to Buy Now
Zscaler has lagged the cybersecurity sector's 2024 rally, but one analyst sees a major catch-up trade brewing.
The cybersecurity sector has been on a tear, but Zscaler hasn't come along for the ride — yet. While peers have posted eye-catching gains, ZS shares have been left in the dust, which is exactly the kind of setup that gets contrarian analysts excited. One Wall Street analyst is now pointing at Zscaler as the single name in the space with the most asymmetric upside left on the table.
The thesis here is simple: laggards in strong sectors don't stay laggards forever. When the fundamentals are intact and the rest of the industry is already priced for perfection, the stock that got skipped starts to look like the trade. Zscaler fits that profile right now. The company operates in zero-trust network security, one of the fastest-growing corners of enterprise tech, and the demand picture hasn't gone cold.
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For retail traders, this is the kind of setup worth watching closely. You've got a high-quality name with real revenue, in a sector that institutional money keeps rotating into, sitting at a relative discount to its peers. That's not a broken stock — that's a coiled spring, if the analyst's read is right. The risk, of course, is that underperformance has a reason, and catching a falling knife dressed up as a bargain is a classic trap.
The next catalyst will matter. Earnings, a guidance raise, or a broad market rotation back into growth could be the trigger that closes the gap between Zscaler and the rest of the cybersecurity pack. Keep this one on your radar — the spotlight the analyst is predicting could come fast when it arrives.
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