Investment Review day 23 of 50: ZScaler $ZS
Zscaler is a leader in cloud-based cybersecurity solutions. They pioneered the Zero Trust security model, focusing on protecting users, devices, and applications regardless of location. Their platform acts as an intermediary between users and the internet, inspecting all traffic, enforcing security policies, and preventing threats in real-time. Essentially, Zscaler helps organizations secure their digital transformation to the cloud.
The company is a leader in the rapidly growing cybersecurity sector, driven by increasing threats and digital transformation. It’s financially healthy, with expanding margins that demonstrate a focus on both revenue growth and operational efficiency.
I added a 2% position in ZScaler to my portfolio just last week. Despite posting recent strong results, the company’s valuation seems to be among the most reasonable among all leading next-gen security companies. It’s also a slightly lower risk investment, as with over $1 billion in net cash, the company has the resources to self-sustain growth and investment in strategic initiatives, and that could be increasingly important if interest rates and inflation remain stubbornly high for the coming few quarters.
What’s your favourite company in the cybersecurity space?
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I’m putting my holdings under the microscope. Over the next 50 days I’ll break down my whole investment portfolio. Wins, losses, and the ‘why’ behind it all. And on day 50 I’m going to share the full portfolio! Follow me and let’s learn together! #StockAnalysis #50daychallenge #cybersecurity #zerotrust
