In This Article:
Zscaler ZS and Palo Alto Networks PANW are two cybersecurity giants offering solutions, including secure web gateway, zero trust network access, security service edge (SSE) and cloud access security broking solutions.
Both Zscaler and Palo Alto Networks are capitalizing on the rapid growth of the cybersecurity space, fueled by the rise of complex attacks, including credential theft and abuse, remote desktop protocol attacks and social engineering-based initial access. Per a Mordor Intelligence report, the cybersecurity market is projected to witness a CAGR of 12.63% from 2025 to 2030.
With this robust industry growth forecast, the question remains: Which stock has more upside potential? Let’s break down their fundamentals, growth prospects, market challenges and valuation to determine which offers a more compelling investment case.
The Case for Zscaler Stock
Zscaler offers a full range of enterprise network security solutions, such as web security, Internet security, antivirus, vulnerability management, firewalls, and control over user activity in mobile, cloud computing, and Internet of Things environments.
ZS is capitalizing on the growing demand for privileged access security in digital transformation and cloud-migration strategies. Furthermore, Zscaler’s presence across several industry verticals enables it to stay protected from the negative impacts of macroeconomic and geopolitical headwinds.
Zscaler is also integrating artificial intelligence across its offering, giving it a long-term growth prospect. ZS uses AI for real-time anomaly detection, advanced threat correlation, AI-based policy recommendations, AI-based data loss prevention and AI Agents like ZDX Copilot. AI integration has enabled it to detect and mitigate cyber threats more effectively while continuously supporting its users.
These factors have enabled Zscaler to increase its revenues by 23.4% year over year and earnings by 23.8% in the second quarter of fiscal 2025.
Zscaler, Inc. Price, Consensus and EPS Surprise
Zscaler, Inc. price-consensus-eps-surprise-chart | Zscaler, Inc. Quote
The Case for Palo Alto Networks Stock
Palo Alto Networks is a leader in cybersecurity, providing solutions for network security, cloud security and endpoint protection. PANW’s next-generation firewall and advanced threat detection technologies are widely recognized and adopted globally.
PANW’s innovative product offerings, strong customer base and expanding market opportunities in areas like Zero Trust and private 5G security solutions drive its growth potential. Palo Alto Networks' strategic vision and continuous technological advancements make it a compelling long-term investment opportunity.