Movement Alert|Zscaler Rises 6.31% in Regular Trading, Guggenheim Upgrades to Buy Rating Driving Continued Rebound

Market Focus
06/01

On June 1, Zscaler rose 6.31% in regular trading, trading at $153.85/share, with trading volume of $478 million. The rally was directly catalyzed by Guggenheim upgrading Zscaler from Neutral to Buy with a price target of $214.

The upgrade comes after Zscaler suffered a historic single-day plunge of over 31% following its fiscal Q3 earnings release. While Q3 results beat expectations with adjusted EPS of $1.08 versus the $1.01 consensus and revenue of $850 million above the $836 million estimate, Q4 revenue guidance of $875-$878 million fell short of the $879 million Street expectation. Executive departures disclosed in an 8-K filing compounded selling pressure. Morgan Stanley noted the stock remains in a penalty box until new sales leadership is filled, while Stifel described the quarter as messy, citing FY2027 growth deceleration concerns.

Guggenheim's contrarian upgrade signals confidence in Zscaler's long-term positioning in zero trust and AI security. The broader Systems Software sector also provided support, with ServiceNow up 9.21%, NEBIUS up 12.94%, Oracle up 3.17%, and Microsoft up 2.7%, reinforcing the recovery momentum for oversold names.

(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.)

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