Long Position on ZS @ $79.00 on 6/21/2019 (Momentum)

Zscaler, Inc. (ZS) operates as a cloud security company worldwide.

The company's flagship services include Zscaler Internet Access solution that connect users to externally managed applications, including software-as-a-service applications and Internet destinations; and Zscaler Private Access solution, which is designed to provide access to internally managed applications, either hosted internally in data centers, and private or public clouds.

It serves customers in various industries, such as airlines and transportation, conglomerates, consumer goods and retail, financial services, healthcare, manufacturing, media and communications, public sector and education, technology, and telecommunications services. 

Shares have formed a bullish "cup and handle" and are expected to move higher out of this formation. On May 30th, Zscaler (ZS) reported breakeven results for the 3rd Quarter April 2019 on revenue of $79.1 million. The consensus earnings estimate was $0.01 per share on revenue of $74.5 million. 

The company said it expects fourth quarter non-GAAP earnings of $0.01 to $0.02 per share on revenue of $81.0 million to $83.0 million. The current consensus estimate is earnings of $0.01 per share on revenue of $78.1 million for the quarter ending July 31, 2019.

Entry Point: $79.00

Stop Loss: $75.00

Trading Range: $30.72 - $82.25

Target Price: $86.90

Updates

7/26/2019 9:37:35 AM

ZS closed ar $87.00

Position closed on 7/26/2019 at price of $87.00 with a 10.13% gain in 35 days.

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