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Zscaler stock drops 39% but fundamentals remain strong; analyst keeps Buy rating.

Analyst Insights
06 Sep 2026
Seeking Alpha
View Source
Bullish
Zscaler stock drops 39% but fundamentals remain strong; analyst keeps Buy rating.

Zscaler's stock has fallen 39%, underperforming the market's 19% gain, yet its business fundamentals show no structural decline. Trading at about 35 times forward P/E, the stock is considered fairly valued given its strengthened fundamentals. The analyst maintains a Buy rating, viewing the recent price drop as excessive and sees Zscaler as a good diversification option. Despite the volatility, the long-term outlook remains positive based on the company's core strengths.

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