Top 5 Growth Stocks in Cybersecurity

3. Zscaler, Inc. (NASDAQ:ZS)

Revenue Growth Over the Past Year as of March 9: 56.83%

Number of Hedge Fund Holders: 42

Zscaler, Inc. (NASDAQ:ZS) is a systems software company based in San Jose, California. The company operates a cloud security company.

A Buy rating was reiterated on Zscaler, Inc. (NASDAQ:ZS) shares on March 3 by T. Michael Walkley at Canaccord.

Zscaler, Inc. (NASDAQ:ZS) has posted revenue growth consistently for a while, In 2022, the company grew revenues by 62% year-over-year. In 2021, revenues grew by 56% year-over-year, and in 2020, they grew up 42% year-over-year. This shows a clear and consistent trend of revenue growth from the company, representing its financial strength even today.

Zscaler, Inc. (NASDAQ:ZS) was found among the 13F holdings of 42 hedge funds in the fourth quarter. Their total stake value was $540 million.

Artisan Partners, an investment management company, mentioned Zscaler, Inc. (NASDAQ:ZS) in its fourth-quarter 2022 investor letter. Here’s what the firm said:

“Zscaler, Inc. (NASDAQ:ZS) provides cloud-based Internet security solutions. In the quarter, it announced 54% revenue growth and expected growth of nearly 40% in 2023 (ahead of expectations). Despite solid fundamental momentum, shares have underperformed this year as investors have grown concerned about slowing demand for enterprise software as the broader global economy slows. We believe the dual trends of rising security vulnerability and increased enterprise digitization will lead to sustained demand, even in a recession. Cybersecurity remains a top concern for businesses and governments alike as cyberattacks can have devastating financial and reputational consequences. Meanwhile, managing the security needs of legacy on-premise applications, a growing number of cloud-based applications (Office 365, Salesforce, etc.) and a more remote workforce (versus pre-pandemic) make operating IT infrastructures increasingly complex. Give the attractive long-term outlook and depressed valuations, we added to the position.”