Cloudflare (NET) Rises As Market Takes a Dip: Key Facts
Cloudflare (NET) closed at $82.83 in the latest trading session, marking a +1.27% move from the prior day. The stock exceeded the S&P 500, which registered a loss of 0.41% for the day. At the same time, the Dow lost 0.12%, and the tech-heavy Nasdaq lost 0.71%.
The web security and content delivery company's stock has climbed by 20.32% in the past month, exceeding the Computer and Technology sector's gain of 6.52% and the S&P 500's gain of 3.53%.
Investors will be eagerly watching for the performance of Cloudflare in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.14, marking a 40% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $394.05 million, reflecting a 27.74% rise from the equivalent quarter last year.
NET's full-year Zacks Consensus Estimates are calling for earnings of $0.62 per share and revenue of $1.65 billion. These results would represent year-over-year changes of +26.53% and +27.27%, respectively.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Cloudflare. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. At present, Cloudflare boasts a Zacks Rank of #3 (Hold).
Looking at its valuation, Cloudflare is holding a Forward P/E ratio of 132.13. This signifies a premium in comparison to the average Forward P/E of 30.12 for its industry.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 81, which puts it in the top 33% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Cloudflare, Inc. (NET) : Free Stock Analysis Report
