Short Sellers May Regret Shorting ZScaler (ZS) As One Analyst Points To 79% Upside

Zscaler Inc. (NASDAQ:ZS) is one of the 7 Worst Cloud Stocks To Buy According to Short Sellers. On June 10, Shrenik Kothari, an analyst at Robert W. Baird, reiterated a Buy rating on Zscaler Inc. (NASDAQ:ZS) and set a price target of $230. The firm’s price target offers an additional 79% upside from here. Similarly, on June 1, Guggenheim upgraded Zscaler Inc. (NASDAQ:ZS) to Buy from Neutral and assigned a target price of $214. The positive analyst sentiment followed the company’s Q3 2026 earnings report.

Zscaler Inc. (NASDAQ:ZS) is one of the 7 Worst Cloud Stocks To Buy According to Short Sellers.

The quarterly report came out on May 26. Zscaler Inc. (NASDAQ:ZS) reported revenue of $850.48 million, up 25% year over year. The earnings per share came in at $1.08, which comfortably beat the Wall Street consensus of $1.01.

For Q4 2026, the company has raised its revenue guidance to between $875 million and $878 million. This translates to an EPS of $1.08 to $1.09. Guggenheim believes Zscaler is in a good position in cloud-based security, such as SASE and SSE. As a result, it could generate more revenue in the coming years.

Zscaler Inc. (NASDAQ:ZS) is a cloud-based internet security platform provider. The company is located in San Jose, California, and was founded in September 2007 by Jay Chaudhry and K. Kailash.

While we acknowledge the risk and potential of ZS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ZS and that has 10,000% upside potential, check out our report about the cheapest AI stock.

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