ZS

Zscaler Inc. (ZS) closed at $167.33 as of 2026-02-02, trading 11.9% below its 200-week moving average of $189.92. This places ZS in the extreme value zone. The stock is currently moving closer to the line, down from 5.1% last week. With a 14-week RSI of 0, ZS is in oversold territory.

Over the past 364 weeks of data, ZS has crossed below its 200-week moving average 11 times. On average, these episodes lasted 9 weeks. Historically, investors who bought ZS at the start of these episodes saw an average one-year return of +80.7%.

With a market cap of $26.7 billion, ZS is a large-cap stock. The company generates a free cash flow yield of 3.6%. Return on equity stands at -2.4%. The stock trades at 13.5x book value.

Share count has increased 10.7% over three years, indicating dilution.

Over the past 7.1 years, a hypothetical investment of $100 in ZS would have grown to $276, compared to $276 for the S&P 500. That represents an annualized return of 15.4% vs 15.4% for the index — confirming ZS as a market-beating investment and the kind of quality company where buying during 200-week moving average touches has historically been rewarded.

Free cash flow has been growing at a 46.5% compound annual rate, with 4 consecutive years of positive cash generation. A business generating more cash every year while trading below its 200-week moving average is exactly the kind of disconnect value investors look for.