CNBC's Final Trades: Highlights on Zscaler and Others
During a recent segment of CNBC's “Halftime Report Final Trades,” prominent analyst and managing partner Malcolm Ethridge discussed his latest stock picks, notably spotlighting Zscaler, Inc. (NASDAQ: ZS). This cloud security leader is set to release its quarterly earnings soon, and analysts are optimistic about their performance.
Zscaler's Expected Earnings Surge
Financial analysts predict Zscaler will report earnings of approximately 86 cents per share, an increase from last year’s 77 cents. The company forecasts quarterly earnings of around $773.86 million, a noteworthy rise compared to the $627.96 million from the same period last year. This reflects growing confidence in Zscaler's business model and market strategy.
Momentum Driven by AI and Security Needs
Zscaler Gains Momentum
With the rising demand for Zero Trust architectures and AI-powered cybersecurity solutions, analysts from Wedbush have raised their price target for Zscaler to $350. The company is enhancing its artificial intelligence capabilities, particularly through acquisitions like Red Canary and SPLX, and pushing forward with initiatives such as Z-Flex and ZDX to increase market share.
Zscaler currently boasts a market cap close to $51 billion and its stock is nearing a 52-week high, positioning the company as a key player in the burgeoning AI security landscape.
Raymond James Financial Recognized
Brian Belski, CEO of Humilis Investment Strategies, has identified Raymond James Financial, Inc. (NYSE: RJF) as one of his top stock recommendations. This choice is substantiated by Raymond James’ recent earnings, which surpassed expectations with a report showing $3.11 earnings per share, beating estimates of $2.82. Additionally, their quarterly sales reached $3.727 billion, higher than the expected $3.625 billion.
Palo Alto Networks in the Spotlight
Stephanie Link, chief investment strategist at Hightower Advisors, highlighted Palo Alto Networks, Inc. (NASDAQ: PANW) as her final trade. This comes amidst a background of positive price targets from several leading analytic firms such as Evercore ISI and Morgan Stanley.
Price Movements
On the trading floor, stock prices have shown varying movements:
- Raymond James Financial's share price decreased by 1.5%, closing at $158.73.
- Zscaler’s stock dropped 3% to settle at $299.45.
- Palo Alto Networks managed a slight gain of 0.2%, closing at $205.25.
Conclusion on Market Trends
These stock selections reflect significant confidence in technological advancements and strategic market positioning, particularly in the realm of cybersecurity. Investors may consider monitoring these companies closely, as their upcoming earnings releases could further influence market sentiments and stock valuations.
Frequently Asked Questions
What stocks were highlighted in CNBC's Final Trades?
The stocks featured included Zscaler, Palo Alto Networks, and Raymond James Financial.
When is Zscaler expected to release their earnings?
Zscaler is set to release its quarterly earnings soon, with analysts predicting strong growth.
What are the earnings expectations for Raymond James?
Raymond James is expected to report strong earnings, having exceeded prior estimates recently.
Which company is leveraging AI for security?
Zscaler is expanding its capabilities particularly in AI-driven security, aiming to capture larger market share.
How did the stocks perform recently?
Raymond James declined 1.5%, Zscaler fell 3%, and Palo Alto ended slightly up by 0.2%.
