13 Most Promising QQQ Stocks According to Hedge Funds

11. Zscaler Inc. (NASDAQ:ZS)

Analyst Upside: 54.60%

Number of Hedge Fund Holders: 50

On January 20, Citizens reaffirmed its Market Outperform rating and $355 price target for Zscaler Inc. (NASDAQ:ZS), citing the cybersecurity company’s solid client retention metrics. The firm reported that elevated switching prices, prolonged onboarding processes, and transfer complexities all contribute to customer loyalty, even as certain customers consider downgrading their services.

According to Citizens, the typical onboarding duration for network security services ranges between 50 and 180 days, requiring companies to pay both current and prospective vendors. As such, Citizens expects substantial renewal activity for Zscaler Inc. (NASDAQ:ZS).

Additionally, on December 16, Mizuho raised Zscaler Inc. (NASDAQ:ZS) to Outperform, citing valuation support despite lingering worries about near-term growth prospects. Despite the firm’s continued demand for “more transparency from management on ZS’s organic growth this year,” Mizuho believes that Zscaler Inc. (NASDAQ:ZS) is “very well-positioned within SASE/Zero Trust.”

Zscaler Inc. (NASDAQ:ZS) is a cloud-based security company that provides cybersecurity solutions by protecting user access to applications and data, regardless of location.