Markets

Insider Trading

Hedge Funds

Retirement

Opinion

Is Zscaler Inc (NASDAQ:ZS) the Best Cybersecurity Stock to Buy Now?

We recently published a list of 10 Best AI Stocks for the Second Half of 2024Since Zscaler Inc (NASDAQ:ZS) ranks 10th on the list, it deserves a deeper look.

Wedbush Securities in a fresh note said mega-cap tech stocks have a 15% upside in the second half of 2024, driven by AI. Wedbush analyst Dan Ives, who has been beating the AI drum and thinks the AI “party” is just getting started, wrote that the $4 trillion AI arms race is between major tech players and GPU chips have become the new oil or gold in the tech industry.

Ives wrote that he thinks NASDAQ will have another strong second half of the year.

 “Tech stocks will be up 15% the rest of 2024 in our view with tech fundamentals set to accelerate as AI use cases materially expand.”

While Ives continues to see the major tech stocks leading the AI market, he thinks the AI-led rally can broaden out to tech companies who have strong “installed” bases which can actually use generative AI applications and models.

Last month, while talking to CNBC, Ives said that the tech bull market is going to last for at least two more years. When asked what could be the threat to this bull run, Ives said that China could be a threat amid a possibility of “tech cold war” but he thinks that is a “contained threat.”

“It started off with the semis, but now it’s started to happen is, the demand and the use cases” are expanding to other companies. Ives called the AI boom the “fourth industrial revolution.”

We picked top AI stocks from Wedbush’s latest note. The firm named some of these stocks as the best picks for the second half of 2024 while called others “oversold” tech stocks. With each stock we have mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).

A close-up of a stock market ticker displaying the company’s stocks.

Zscaler Inc (NASDAQ:ZS)

Number of Hedge Fund Investors: 39

Dan Ives of Wedbush thinks Zscaler Inc (NASDAQ:ZS) is one of the top AI picks for the rest of 2024. Other Wall Street analysts are also turning bullish on Zscaler Inc (NASDAQ:ZS).

Recently, Baird talked about Zscaler Inc’s (NASDAQ:ZS) Zenith Live event and highlighted the company’s new products and expanding total addressable market.

Baird analyst Shrenik Kothari said in a note that Zscaler Inc (NASDAQ:ZS) unveiled new features including machine learning-powered identity protection and cloud browser-isolation feature as well as AI-driven content inspection. These features, according to Kothari, target an expanded $96 billion total addressable market. The analyst set an Outperform rating and a $260 price target on the stock.

Analysts believe Zscaler Inc’s (NASDAQ:ZS) Zero Trust Exchange platform has strong growth catalysts amid the rise in demand for online security solutions.  The platform offers reduced attack surface and increased inspection and AI-driven threat detection. It removes the need for network segmentation and multiple-point products.

While Zscaler Inc (NASDAQ:ZS) is still a loss-making company (it’s profitable on a normalized basis) most of its losses are due to stock-based compensations, which is important to attract top talent. Zscaler Inc’s (NASDAQ:ZS) P/S ratio of 14.22 is about 42% less than its five-year average. In May, ZS upped its  revenue guidance for the third straight quarter. Wall Street expects Zscaler Inc’s (NASDAQ:ZS) revenue to grow 22% next year and earnings to rise by 26.81% each year over the next five years on a per-annum basis.

Overall, Zscaler Inc (NASDAQ:ZS) ranks 10th on Insider Monkey’s list titled 10 Best AI Stocks for the Second Half of 2024. While we acknowledge the potential of Zscaler Inc (NASDAQ:ZS), our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than Zscaler Inc (NASDAQ:ZS) but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: Analyst Sees a New $25 Billion “Opportunity” for NVIDIA and Jim Cramer is Recommending These Stocks.

Disclosure: None. This article is originally published at Insider Monkey.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

The best part? You can discover everything about this company and its groundbreaking technology right now.

I’ve compiled everything you need to know about this groundbreaking company in a detailed, members-only report.

Trust me — you’ll want to read this report before putting another dollar into any tech stock.

For a ridiculously low price of just $9.99 a month, you can unlock a year’s worth of in-depth investment research and exclusive insights – that’s less than a single fast food meal!

Here’s why this is a deal you can’t afford to pass up:

• Access to our Detailed Report on this Game-Changing AI Stock: Our in-depth report dives deep into our #1 AI stock’s groundbreaking technology and massive growth potential.

• 11 New Issues of Our Premium Readership Newsletter: You will also receive 11 new issues and at least one new stock pick per month from our monthly newsletter’s portfolio over the next 12 months. These stocks are handpicked by our research director, Dr. Inan Dogan.

• One free upcoming issue of our 70+ page Quarterly Newsletter: A value of $149

• Bonus Reports: Premium access to members-only fund manager video interviews

• Ad-Free Browsing: Enjoy a year of investment research free from distracting banner and pop-up ads, allowing you to focus on uncovering the next big opportunity.

• 30-Day Money-Back Guarantee:  If you’re not absolutely satisfied with our service, we’ll provide a full refund within 30 days, no questions asked.

If you’re thinking about getting in, don’t wait – because once Wall Street catches wind of this story, the easy money will be gone.

Space is Limited! Only 1000 spots are available for this exclusive offer. Don’t let this chance slip away – subscribe to our Premium Readership Newsletter today and unlock the potential for a life-changing investment.

Here’s what to do next:

1. Head over to our website and subscribe to our Premium Readership Newsletter for just $9.99 a month.

2. Enjoy a year of ad-free browsing, exclusive access to our in-depth report on the revolutionary AI company, and the upcoming issues of our Premium Readership Newsletter over the next 12 months.

3. Sit back, relax, and know that you’re backed by our ironclad 30-day money-back guarantee.

Don’t miss out on this incredible opportunity! Subscribe now and take control of your AI investment future!

No worries about auto-renewals! Our 30-Day Money-Back Guarantee applies whether you’re joining us for the first time or renewing your subscription a month later!