Zscaler, Inc. (ZS) Acquires Red Canary; Evercore ISI and Cantor Fitzgerald Maintain Bullish Stance

With strong share price gains and significant hedge fund interest, Zscaler, Inc. (NASDAQ:ZS) secures a spot on our list of the 11 Hot Software Stocks to Buy Now.

Zscaler, Inc. (ZS) Acquires Red Canary; Evercore ISI and Cantor Fitzgerald Maintain Bullish Stance

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On July 23, 2025, Evercore ISI reiterated its ‘Buy’ rating on Zscaler, Inc. (NASDAQ:ZS) with a $290 price target. A few days later, on August 5, 2025, Cantor Fitzgerald also maintained its ‘Buy’ rating with a $340 price target. These bullish ratings follow the company’s acquisition of Red Canary, a leader in AI-driven threat management. The acquisition was announced on August 1, 2025.

While Red Canary will initially operate as a separate unit, it will integrate its agentic AI technology with Zscaler, Inc. (NASDAQ:ZS)’s Data Fabric for Security. The result of this integration will be the industry’s most comprehensive Security Operations Center solutions. Relying on 500 billion daily transactions on the Zscaler Zero Trust Exchange, the integrated platform is expected to enhance detection, investigation, and response times. It will also unify security operations for customers and partners globally.

With its global Zero Trust cloud security platform, Zscaler, Inc. (NASDAQ:ZS) enables secure user, device, and application connectivity, preventing cyberattacks and data loss. It is included in our list of the hot stocks to buy.

While we acknowledge the potential of ZS to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ZS and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.