10 High Growth Cybersecurity Stocks To Buy

7. Zscaler Inc. (NASDAQ:ZS)

Number of Hedge Fund Holders: 52

Zscaler Inc. (NASDAQ:ZS) is a cloud security company that provides a purpose-built, multi-tenant platform designed to enable secure access to cloud resources. Its cloud-native Zero Trust Exchange platform helps organizations securely connect users, workloads, and IoT/OT devices while enforcing business policies.

In February 2025, the company announced a strategic alliance with Ernst & Young LLP (EY US) to enhance security and simplify digital transformations through cloud-delivered services. Additionally, in January 2025, Zscaler Inc. (NASDAQ:ZS) introduced a Zero Trust network access service integrated within RISE with SAP, aimed at securing enterprise cloud migration efforts. These developments demonstrate Zscaler Inc. (NASDAQ:ZS)’s ongoing innovation, strategic partnerships, and commitment to strengthening cybersecurity frameworks.

Zscaler Inc. (NASDAQ:ZS) delivered Q1 FY25 results on Dec 02, 2024, reporting $628 million in revenue, a 26% year-over-year increase. The company’s GAAP net loss narrowed to $12.1 million, significantly improving from $33.5 million in Q1 FY24, while non-GAAP net income surged to $124.3 million, up from $86.4 million. Earnings per share (EPS) on a non-GAAP basis rose to $0.77, compared to $0.55 a year ago. The company also saw strong cash flow performance, with free cash flow reaching $291.9 million, compared to $224.7 million in the previous year.

On February 12, 2025, Mizuho analyst Gregg Moskowitz maintained a Neutral rating on the stock while raising the price target from $210 to $225.