In the realm of cybersecurity, a peculiar phenomenon has unfolded. Zscaler, Inc. (NASDAQ:ZS), a stalwart in the industry, has witnessed a notable pullback from its year-to-date highs, evoking concerns reminiscent of CrowdStrike’s (CRWD) IT outage. However, a closer examination reveals that Zscaler’s fiscal fourth-quarter results were nothing short of impressive, with top-line growth remaining resilient.
This paradox has led many to ponder the shifting landscape of growth investing, particularly in the wake of a historic valuation reset. As investors navigate this new terrain, it’s essential to identify companies with strong fundamentals, capable management teams, and sectors poised for sustained growth.
One such approach involves seeking out companies with robust balance sheets, adept leadership, and a clear path to long-term appreciation. By adopting this strategy, investors can uncover hidden gems and capitalize on opportunities that others may overlook.
Disclosure: The author holds a beneficial long position in ZS and MSFT through various means, including stock ownership, options, or derivatives. This article represents the author’s personal opinions and is not influenced by external compensation or business relationships.
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