Zscaler vs Western Digital

Zscaler and Western Digital are compared on this page to provide a clear view of business models, financial performance, and market context. The content is presented in neutral terms to help readers understand how each company operates, generates value, and positions itself within its industry. Educational content, not financial advice.

Comparison Snapshot

Key Financial Metrics

Metric

WDC

$34.21B

Market Cap

$82.35B

48.27%

Potential Profit

-29.28%

Buy

Analyst Rating

Buy

Why It's Moving

Zscaler Climbs Modestly Amid Anticipation for Upcoming Earnings Beat

Analysts forecast Q2 EPS of $0.89, a 14.1% year-over-year jump, and revenue of $798 million, up 23.17%, highlighting accelerating demand for cloud-native cybersecurity.
Recent analyst updates lean bullish, with multiple buy ratings and price targets up to $290 from firms like BMO Capital and Rosenblatt, reflecting optimism on business momentum.
Despite a premium Forward P/E of 54.34 versus the industry average, Zscaler's PEG ratio of 2.98 supports its growth trajectory amid sector tailwinds.

Sentiment:

🐃Bullish

Western Digital gears up for Q2 earnings amid analyst upgrades and bullish HDD demand signals.

Morgan Stanley lifted its target to $260 from $228, forecasting margin strength and EPS upside for Western Digital and peers.
Rosenblatt hiked to $270 from $165 on Buy, driven by rising HDD prices, build-to-order visibility, and HAMR tech potential.
UBS upped to $230 from $145, citing strong gross margins and fully booked capacity through 2027 despite near-term constraints.

Sentiment:

🐃Bullish

Zscaler Climbs Modestly Amid Anticipation for Upcoming Earnings Beat

Analysts forecast Q2 EPS of $0.89, a 14.1% year-over-year jump, and revenue of $798 million, up 23.17%, highlighting accelerating demand for cloud-native cybersecurity.
Recent analyst updates lean bullish, with multiple buy ratings and price targets up to $290 from firms like BMO Capital and Rosenblatt, reflecting optimism on business momentum.
Despite a premium Forward P/E of 54.34 versus the industry average, Zscaler's PEG ratio of 2.98 supports its growth trajectory amid sector tailwinds.

Sentiment:

🐃Bullish

Western Digital gears up for Q2 earnings amid analyst upgrades and bullish HDD demand signals.

Morgan Stanley lifted its target to $260 from $228, forecasting margin strength and EPS upside for Western Digital and peers.
Rosenblatt hiked to $270 from $165 on Buy, driven by rising HDD prices, build-to-order visibility, and HAMR tech potential.
UBS upped to $230 from $145, citing strong gross margins and fully booked capacity through 2027 despite near-term constraints.

Sentiment:

🐃Bullish

Investment Analysis

Zscaler

Pros

Zscaler reported a 21% year-over-year revenue increase in Q4 2025, reaching $719 million, with billings up 32% to $1.2 billion, showing strong growth momentum.
The company was recognized as a leader in the Forrester Wave for SASE solutions, highlighting its strong position in cloud-native cybersecurity.
Zscaler guided fiscal 2026 annual recurring revenue (ARR) to $3.68 billion, indicating solid future revenue visibility and expanding margins.

Considerations

Despite revenue growth, Zscaler reported losses of $41.48 million in 2025, though reduced by 28%, losses still persist impacting profitability.
The stock trades at a steep premium with significant valuation concerns amid increasing competition in the cybersecurity sector.
Price forecasts from some analysts predict a potential near-term decline, with average price targets indicating possible downside by end of 2025.

Western Digital

WDC

Pros

Western Digital is a market leader in digital storage solutions, serving both industrial and consumer markets with a broad product portfolio.
The stock trades at a moderate P/E ratio around 13, indicating reasonable valuation compared to peers in the tech storage sector.
Western Digital offers a dividend, albeit modest, with some of the highest dividend yields among S&P 500 companies in the technology space.

Considerations

The company faces exposure to cyclical hardware demand and commodity sensitivity, impacting revenue and profitability volatility.
Competitive pressure from emerging storage technologies and rivals can challenge market share and margin expansion.
Macroeconomic or geopolitical risks affecting supply chains and global demand for storage devices could negatively impact performance.

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