These 3 Stocks Are Absurdly Overvalued Right Now
Lockdown measures to limit the spread of COVID-19 have boosted the consumption of online services over the last several months. Many companies exposed to this trend are poised to thrive, but their stocks don't necessarily translate into investment opportunities. The market sometimes overreacts. Here are three such stocks that are overpriced right now.
Zscaler's (NASDAQ: ZS) cybersecurity solutions allow remote workers to safely access the internet and cloud-based resources. As work-from-home policies boosted the company's core businesses, management raised its full-year fiscal 2020 revenue outlook to a range of $422 million to $424 million, representing year-over-year growth of 39% to 40%.
Zscaler's stock price is now sitting at all-time highs, and the market values the company at an enterprise value-to-sales ratio of 36.
Source Fool.com
