Josh Brown Says Zscaler Stock Is 'On The Verge' Of Breaking Out

Ritholtz Wealth Management's Josh Brown believes Zscaler Inc (NASDAQ:ZS) is on the verge of breaking out to the upside, backed by strength in the broader cybersecurity space.

What To Know: Thursday on CNBC’s “Fast Money Halftime Report,” Brown suggested that Zscaler could be about to rip higher after consolidating over the past year.

“I wanted to highlight it because it’s on the best stocks in the market list and it’s really on the verge of a decision point … and I think it really looks like it wants to punch through,” Brown said.

Zscaler has been battling overhead resistance for more than a year and each time the stock moves lower, buyers come in around support, he said, adding that Zscaler has bounced off its 200-day moving average four times already in 2025.

The stock is currently trading with relative strength that shows it’s not overbought and it’s outpacing most software stocks year-to-date, he added.

“The buyers are coming in where they should be coming in,” Brown said.

“I think if it can hold this level and you get a little bit of cooperation from the Nasdaq, a little bit of a better tone for tech, this will be one of the first names to break out.”

Related Link: Elon Musk’s DOGE Service Team Member Tied To Cybercrime Group: Report

Earlier this week, Brown predicted that cybersecurity stocks would outperform throughout the remainder of the year on the idea that no company can afford to risk cutting cybersecurity spend.

23andMe recently filed for bankruptcy after suffering a data breach, which has helped cyber stocks trade at a premium to other software and tech names, according to Brown.

Brown noted that he doesn’t currently own shares of Zscaler, but he said he’s eyeing it for a trade. Brown’s top pick in the space is CrowdStrike Holdings Inc (NASDAQ:CRWD), which is up about 7% since the start of the year.

ZS Price Action: Zscaler shares were down 0.91% at $209.64 at the time of publication Thursday, according to Benzinga Pro.

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