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Cloudflare (NET) Gains As Market Dips: What You Should Know
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In the latest trading session, Cloudflare (NET - Free Report) closed at $45.87, marking a +0.95% move from the previous day. This move outpaced the S&P 500's daily loss of 0.07%. At the same time, the Dow added 0.27%, and the tech-heavy Nasdaq gained 0.02%.
Prior to today's trading, shares of the web security and content delivery company had lost 18.86% over the past month. This has lagged the Computer and Technology sector's loss of 7.26% and the S&P 500's loss of 7.99% in that time.
Investors will be hoping for strength from Cloudflare as it approaches its next earnings release. In that report, analysts expect Cloudflare to post earnings of -$0.01 per share. This would mark year-over-year growth of 50%. Meanwhile, our latest consensus estimate is calling for revenue of $227.48 million, up 49.23% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.03 per share and revenue of $956.16 million. These totals would mark changes of +160% and +45.66%, respectively, from last year.
Any recent changes to analyst estimates for Cloudflare should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 1.74% lower. Cloudflare is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, Cloudflare is holding a Forward P/E ratio of 1731.05. This represents a premium compared to its industry's average Forward P/E of 42.41.
Investors should also note that NET has a PEG ratio of 69.24 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Internet - Software stocks are, on average, holding a PEG ratio of 2.42 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 144, putting it in the bottom 44% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Cloudflare (NET) Gains As Market Dips: What You Should Know
In the latest trading session, Cloudflare (NET - Free Report) closed at $45.87, marking a +0.95% move from the previous day. This move outpaced the S&P 500's daily loss of 0.07%. At the same time, the Dow added 0.27%, and the tech-heavy Nasdaq gained 0.02%.
Prior to today's trading, shares of the web security and content delivery company had lost 18.86% over the past month. This has lagged the Computer and Technology sector's loss of 7.26% and the S&P 500's loss of 7.99% in that time.
Investors will be hoping for strength from Cloudflare as it approaches its next earnings release. In that report, analysts expect Cloudflare to post earnings of -$0.01 per share. This would mark year-over-year growth of 50%. Meanwhile, our latest consensus estimate is calling for revenue of $227.48 million, up 49.23% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.03 per share and revenue of $956.16 million. These totals would mark changes of +160% and +45.66%, respectively, from last year.
Any recent changes to analyst estimates for Cloudflare should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 1.74% lower. Cloudflare is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, Cloudflare is holding a Forward P/E ratio of 1731.05. This represents a premium compared to its industry's average Forward P/E of 42.41.
Investors should also note that NET has a PEG ratio of 69.24 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Internet - Software stocks are, on average, holding a PEG ratio of 2.42 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 144, putting it in the bottom 44% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.