Zscaler saw an improvement in its IBD SmartSelect Composite Rating Tuesday, from 94 to 97.
The new score indicates the company is now outperforming 97% of all stocks in terms of the most important fundamental and technical stock-picking criteria. History shows the top market performers tend to have a 95 or higher score as they launch their major climbs.
Zscaler is currently extended beyond a proper buy zone after clearing the 143.63 buy point in a double bottom.
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The stock earns a 99 EPS Rating, which means its recent quarterly and longer-term annual earnings growth is outpacing 99% of all stocks.
Its Accumulation/Distribution Rating of D shows moderate selling by institutional investors over the last 13 weeks. Look for the rating to improve to at least a C or better.
The company reported a 24% earnings gain for Q2. Top line growth fell to 23%, down from 26% in the prior quarter.
Zscaler holds the No. 2 rank among its peers in the Computer Software-Security industry group. Fortinet is the top-ranked stock within the group.
This article was created automatically with Stats Perform's Wordsmith software using data and article templates supplied by Investor's Business Daily. An IBD journalist may have edited the article.
