No. of Recommendations: 5
If fundamentals hold doing nothing appears to be an extremely good thing to do. Again it all depends on the fundamentals. Now if Zs were selling at 20x+ forward revenues (as it could if we get lucky) then that is a different discussion, and one that fits in here. But it is not, and with revenues growing at 50% for 2 or 3 years in a row Zs can double every 2 years and still not be selling for 20x forward revenhe


That is not consistent with what the research is suggesting. We have ONLY 5 stocks that have ever maintained a P/S at 20 or higher for 3 years......that is it.....just 5.

And of those 5, most underperformed other tech stocks in subsequent years.

I get what you are suggesting.....just hold for 10 years and you can have 20% CAGR which is outstanding.

OK, agree,that is pretty solid return....assuming you aren’t tempted to sell, can handle periodic stock dumps and you really did pick the next ISRG/AAPL to be willing to hold for a decade, etc.

But ZS is not going to do what TTD, MDB and TWLO did this past year....that has never happened and ZS isn’t going to change that IMO. In fact since ZS launched already at a massive ZS, no retail investor is likely to see those type of returns in the next 3-4 years....barring some cult classic stock affect like TSLA.

IMO, we might be better rewarded to find the next early 2018 TTD, MDB, TWLO......those in the P/S 6-12 range.....that have the opportunity to expand multiples.

None of the above three were EVER a turnaround.....we aren’t looking for that IMO.....not a value play......but we are looking for massive revenue growth.....just like the above 3 had all along.
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