Why Zscaler Stock Rocketed Higher This Week

This week's trading for Zscaler (NASDAQ: ZS) has taken a striking turn, with the cybersecurity stock soaring 20.7% in just one week. Following a modest 3% drop during the Labor Day-shortened market week, Zscaler has now zoomed to a 56% upside potential according to Bernstein's upgraded price target of $298. The bullish outlook stems from positive market sentiment towards cybersecurity stocks, as well as Bernstein's assessment that some previously undervalued options remain a compelling choice for investors.

Zscaler is currently trading at a discounted multiple of 25.8 times operating cash flow, compared to its five-year average of 47.6. Despite The Motley Fool Stock Advisor analyst team not including Zscaler in their top 10 list, the stock appears to be an opportune moment for cybersecurity investors to capitalize on its current discount.