Zscaler Inc (NASDAQ: ZS) is having an incredibly strong day in the market today, and for good reason. The company announced that it has been selected to pursue Joint Authorization FedRAMP certification under the FedRAMP Connect program. Today, we’ll talk about:
- The news;
- what we’re seeing from ZS stock as a result; and
- what we’ll be watching for ahead.
ZS Announces That It Has Been Selected For A New Program
As mentioned above, Zscaler is having a great day in the market today after announcing news that it has been selected for a program. In a press release issued early this morning, the company said that it is one of four cloud service providers that have been selected to pursue Joint Authorization Board (JAB) FedRAMP certification, at the High Impact level, through the FedRAMP Connect program. In the release, ZS said that the selection is a big step in the company’s work to expand growth within the Federal market.
Under the FedRAMP Connect program, the FedRAMP Project Management Office, Federal CIOs, and the Office of Management and Budget review business cases. Once reviewed, the parties select cloud service providers to choose JAB certification based on government-wide demand, applicability for cross-agency use, and the security of the solution.
Earlier this year, ZS announced that its Zscaler Private Access-Government, a zero trust, purpose-built cloud security solution, achieved a FedRAMP Agency Authorization. This authorization was sponsored by the Federal Communications Commission (FCC). ZPA-Government is a product that delivers certified, secure access to agency applications from anywhere on any device.
In a statement, Manoj Apte, CSO at ZS, had the following to offer:
We are committed to meeting the most stringent Department of Defense (DOD) and intelligence community security requirements and certified to deliver services through DOD cloud programs such as JEDI… We are paving the way for agencies to be able to use Zscaler’s cloud-based security solutions for Defense Information Systems Agency (DISA) Impact levels IL4, IL5 and IL6.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to work in the market is that the news leads to moves. In the case, of Zscaler, the news proved to be overwhelmingly positive. After all, this selection is a big step in bringing the company’s services further into the Federal marketplace. So, it’s not surprising to see that excited investors are pushing the stock on a run for the top today. As is just about always the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (12:11), ZS is trading at $41.80 per share after a gain of $4.59 per share or 12.34% thus far today.
Stop wasting your time! Start finding winning trades in minutes with Trade Ideas!
What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on ZS. In particular, we’re interested in following the story surrounding the company’s continued work to expand its services within the Federal market. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
Never Miss The News Again
Do you want real-time, actionable news delivered to your inbox? Join the CNA Finance mailing list below!