Zscaler (ZS) is a cybersecurity stock that has been down 60% from its all-time high. However, investors should buy the dip because of its strong financial results and growth prospects. Zscaler’s Zero Trust technology is designed to eliminate cybersecurity threats by analyzing the device and location of each user attempting to sign in to a network. Additionally, Zscaler is focusing heavily on artificial intelligence (AI) to better protect its customers. Its Zero Trust Exchange is the largest security cloud in the world, thwarting 9 billion threats each day and ingesting 300 trillion signals into its AI models. Zscaler currently has more than 6,000 customers globally, including 30% of the world’s largest 2,000 companies. Its strong Q3 results prompted the company to raise its revenue guidance for the fiscal 2023 full year to $1.59 billion, from $1.56 billion previously.
Given the size of the opportunity that exists in the cybersecurity industry today, Zscaler stock would make a great addition to any portfolio, especially while it’s still so heavily beaten down.