7 Cloud Computing Stocks to Lift Your Portfolio to New Heights - 2 of 7

#2 - zScaler (NASDAQ:ZS)

The red-hot segment of a red-hot sector in cybersecurity. As more companies have gone to a work-from-anywhere model, the need for cybersecurity tools, such as those offered by zScaler (NASDAQ:ZS), have increased almost exponentially.

In the case of zScaler, the company gives customers the ability to protect their IT infrastructure and do so on a subscription basis. Analysts love this because it gives zScaler a predictable, recurring revenue stream.

zScaler is an example of both the risk and reward of cloud computing stocks. ZS stock is up 192% for the year (as of this writing). And while analysts give the stock a consensus buy rating, there are mixed reviews on whether the company’s stock is at a tipping point.

That shouldn’t necessarily be your concern. The question you have to ask is, does the company have an addressable market? It does. And is it around for the long haul? Again that answer appears to be yes. I talked with a more “technically savvy” friend who suggested zScaler may have more of a moat as a network security platform than CrowdStrike which offers an endpoint security platform.

About Zscaler

Zscaler, Inc operates as a cloud security company worldwide. The company offers Zscaler Internet Access solution that provides users, workloads, IoT, and OT devices secure access to externally managed applications, including software-as-a-service (SaaS) applications and internet destinations; and Zscaler Private Access solution, which is designed to provide access to managed applications hosted internally in data centers, and private or public clouds. Read More 

Current Price

$172.96

Consensus Rating

Moderate Buy

Ratings Breakdown

27 Buy Ratings, 6 Hold Ratings, 0 Sell Ratings.

Consensus Price Target

$230.55 (33.3% Upside)