Zscaler stock shows potential despite market decline

Zscaler's stock has risen nearly 10% in 2025, despite the S&P 500's decline. The company reported strong financial results for its second quarter, with revenue of $647.9 million, a 23% increase from last year, and improved profitability. Zscaler's new Zero Trust Branch segment enhances cybersecurity by isolating devices and applications. The company aims to triple its Zero Trust Everywhere customers from 130 over the next 18 months, reflecting a shift towards sustainable growth. Analysts are optimistic about Zscaler, with 27 out of 45 recommending a buy. The average price target is $236.50, suggesting an 18% potential upside. Zscaler's valuation remains attractive compared to other cybersecurity firms, indicating room for growth.