Why Zscaler (ZS) Still Has a Zero-Trust Turnaround Case

Zscaler, Inc. (NASDAQ:ZS) is one of the best underperforming tech stocks to buy for a turnaround. The stock remains deep in recovery territory, showing a 52-week high of $336.99 and a 52-week low of $114.63, while shares traded at $172.11 on May 18. MarketBeat showed a Moderate Buy consensus rating and an average price target of $261.26, implying nearly 50% upside.

The latest analyst signal was mixed but still supportive. On May 18, Rosenblatt cut its price target on Zscaler to $223 from $250, but kept a Buy rating, with the new target still implying about 29.6% upside from the stock’s then-current price. That makes the setup less of a blind bullish call and more of a valuation-reset turnaround case.

The product story is also moving in the right direction. On April 29, Zscaler introduced the next phase of its Zero Trust Browser, aimed at securing browsing and application access as enterprises face risks from malicious extensions, phishing, unmanaged devices, and accidental GenAI-related data exposure. Earlier, on April 21, Zscaler won the 2026 Google Cloud Partner of the Year Award for Security in the Application category, with the company highlighting integrations across Google workloads, Workspace DLP, Google SecOps, and Vertex AI.

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Zscaler, Inc. (NASDAQ:ZS) is a global zero-trust security company whose platform helps organizations secure users, branches, applications, data, and devices.

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 this cheapest AI stock.

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