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Zscaler Faces Bearish Pressure from Major Investors

Zscaler (ZS) sees a significant shift in investor sentiment, as 44% adopt a bearish outlook amid unusual options activity. Investors are now targeting a price range of $200 to $270 for the next three months.

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AI Rating:   5

Market Sentiment and Options Activity
Recent public options records indicate a substantial increase in Zscaler's trading volume, with a predominance of bearish sentiment. Heavyweight investors show significant activity, where 44% are betting against the stock and only 22% are bullish. Additionally, the put-call ratio highlights a tilt towards puts, indicating cautious or bearish sentiment among large investors.

Predicted Price Range
The identified price range of $200 to $270 suggests that investors foresee volatility in the near future. The heightened activity in put and call options indicates a diversified strategy as investors brace for possible price adjustments. Such notable unpredictability usually results from significant events anticipated in the market.

Current Performance Indicators
Zscaler's latest stock price sits at $230.13, representing a slight increase of 1.35%. The market is preparing for next quarter's earnings report, with expectations already factored into the stock price. Current RSI indicators suggest the stock may be overbought. Professional analyst ratings paint a mixed picture, with varying target prices from $200 to $250 depending on the outlook of different firms.

Analyst Ratings
Analyst sentiment is split, with one group upgrading Zscaler to an Overweight rating and others opting for Neutral or Equal-Weight stances, indicating varied expectations for future performance. This analysis underlines both the volatility surrounding stocks like Zscaler and the necessity for investors to stay alert and react to market changes promptly.

Stocks:  ZS