11 Best Cybersecurity Stocks to Buy According to Wall Street Analysts

9. Zscaler, Inc. (NASDAQ:ZS)

Average Analyst Upside: 8.88%

Number of Hedge Fund Holders: 52

Zscaler, Inc. (NASDAQ:ZS), based in San Jose, California, is a prominent cybersecurity company providing solutions to secure private networks, manage platform access, and ensure regulatory compliance.

Zscaler, Inc. (NASDAQ:ZS) recently expanded its partnership with Cognizant to deliver an advanced, AI-powered zero-trust cloud security platform tailored to address evolving cyber threats. The collaboration offers integrated solutions to simplify security, enhance protection, and reduce costs.

KeyBanc Capital Markets recently raised its price target for Zscaler, Inc. (NASDAQ:ZS) to $250 from $245 while maintaining an Overweight rating. This adjustment follows the company’s robust Q1 performance, marked by a slight billings beat and upward revision of future earnings. Zscaler achieved a 34% year-over-year revenue growth and maintained impressive gross profit margins of 78%, showcasing operational efficiency. Despite concerns about the CFO’s announced retirement ahead of a significant expected revenue ramp in the year’s second half, KeyBanc remains confident. Analysts anticipate a more measured growth trajectory in the latter half, building on Zscaler’s initial success in the first quarter.