Jim Cramer says buy Zscaler 'when the smoke clears' around its earnings report

The initial post-earnings decline in Zscaler (ZS) shares opened the door for investors to soon buy the cybersecurity stock, CNBC's Jim Cramer said Tuesday.

"When the smoke clears ... go back in because cybersecurity is still the hottest area in the U.S. economy," Cramer said on "Squawk on the Street."

Shares of Zscaler were about flat around noon ET at $191 each, well off their lows earlier in the session.

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Tuesday's moves followed the Monday evening release of Zscaler's fiscal 2024 first-quarter results, which beat Wall Street expectations on both revenue and per-share earnings. However, Cramer said investors were disappointed, in part, by a 37% quarter-over-quarter decline in total billings growth.

Cramer alluded to the fact that earlier in November, Palo Alto Networks (PANW) — a holding in his Charitable Trust, the portfolio used by the CNBC Investing Club — saw its stock fall on concerns about billing figures alongside its fiscal 2024 first-quarter report. As of Tuesday, shares of Palo Alto Networks have erased all those losses and traded at an intraday all-time high above $276 each.

For Zscaler, Cramer said he's also looking past the billings metrics and more focused on the long-term opportunity for the company because digital security threats remain abundant.

"I was very happy with the quarter," Cramer said.

Here's a full list of the stocks in Jim's Charitable Trust, the portfolio used by the CNBC Investing Club.