Should You Buy Zscaler Stock at Its All-Time High?
Following better-than-expected quarterly results and raised guidance last week, Zscaler's (NASDAQ: ZS) stock price reached all-time highs. The cloud cybersecurity specialist is poised to keep growing over the long term thanks to its innovative solutions, but is now a good time to buy the stock?
Zscaler's cybersecurity portfolio ideally addresses the increasing demand for users to securely browse the internet and access apps from anywhere. Over the last several years, enterprises have been moving some of their applications and infrastructure to the cloud to benefit from scalable resources on demand. And coronavirus-induced shelter-in-place orders accelerated the need for remote working solutions. With both these trends, traditional cybersecurity devices that protect enterprise resources hosted in a central data center are becoming insufficient.
Zscaler's solutions allow secure access to resources no matter where the user and applications are located, which exposes the company to the attractive cloud cybersecurity market that is forecast by research outfit Mordor Intelligence to grow at a compound annual growth rate of 14.4% through 2025. Founded in 2007, Zscaler benefited from a head start as it built a cloud-based security system.
Source Fool.com
