On May 29, Zscaler rose 5.02% in regular trading, trading at $136.62/share, with trading volume of $659 million. The rebound follows a historic single-day plunge of over 31% earlier this week after the company issued fourth-quarter revenue guidance below expectations.

The current recovery is primarily driven by technical oversold conditions and broad strength across the Systems Software sector. Despite multiple investment banks cutting their price targets, Wedbush maintained its outperform rating with a $220 target, citing Zscaler's long-term competitive advantages in zero trust architecture and AI security. Morgan Stanley noted the stock remains in a penalty box until traction emerges in the security operations business and new sales leadership roles are filled.

Within the Systems Software sector, peers posted strong gains providing support: ServiceNow up 14.27%, Oracle up 7.95%, CrowdStrike up 6.93%, and Microsoft up 3.9%. The sector-wide positive momentum offered a tailwind for the oversold stock's recovery.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)