Cybersecurity stocks are surging. One looks promising into earnings
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- Zscaler revenue grew 26% YoY, with trailing 12‑month revenue expected at $3.32 billion.
- Zscaler free cash flow margins are about 27%, with $1 billion NTM free cash flow, ~24% YoY FCF growth, and $1.7 billion net cash.
- Zscaler’s Zero Trust Exchange platform underpins its AI security offering, complemented by AI Guardrails for public and private apps.
- Zscaler options imply a 12.2% move versus an 11.3% long‑term average, indicating they are not cheap.
- Zscaler investor is using a call‑spread risk reversal (selling OTM put, buying call spread) to gain bullish exposure with minimal premium outlay.
Why it matters: Enterprise security buyers gain from Zscaler’s AI‑ready Zero Trust Exchange, while investors can capture upside via low‑cost bullish options despite premium pricing; the firm’s cash strength reduces balance‑sheet risk.
