Zscaler Believes It's the Clear Leader in Zero-Trust Therefore, it was still a fantastic year for ZS investors in 2021. Moreover, before the sell-off, its YTD gain almost reached 90%. ZS stock YTD performance (as of 31 December' 21).ĭespite its recent retracement, ZS stock managed to finish 2021 with an impressive return of 60.9%, easily outperforming the broad market. Therefore, we believe that the recent retracement has created an opportunity for more aggressive investors to consider adding. Moreover, the company's stock remains strongly supported along its long-term uptrend.
#ZSCALER ZERO TRUST BEYONDCORP FREE#
Despite that, we believe that its free cash flow (FCF) generative capability remains robust and is expected to gain leverage moving forward. The company's stock was also pummeled recently as its rich valuation became the focus of the growth stocks sell-off. Therefore, the company is still very early in leveraging its $72B serviceable addressable market (SAM). Moreover, it has penetrated just 35% of the Fortune 500. ZS is the leader in the zero-trust market. What's happened in the last two-year time period is that people have started to recognize the security and operational benefits of adopting this kind of model." The company's security platform is developed "on top of a distributed, secure access service edge (SASE) architecture." ZS emphasized that the COVID-19 pandemic accelerated the adoption towards zero-trust security as SVP of cloud protection Rich Campagna added (edited): " The pandemic pushed discussion - and certainly adoption - around zero trust. ( ZS) is the cloud-native, multi-tenant, zero-trust security leader. Hapabapa/iStock Editorial via Getty Images Investment Thesis