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Cloudflare (NET) Dips More Than Broader Markets: What You Should Know
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Cloudflare (NET - Free Report) closed at $53.78 in the latest trading session, marking a -1.19% move from the prior day. This change lagged the S&P 500's 1.03% loss on the day. Meanwhile, the Dow lost 1.11%, and the Nasdaq, a tech-heavy index, lost 0.06%.
Coming into today, shares of the web security and content delivery company had lost 15.47% in the past month. In that same time, the Computer and Technology sector lost 13.11%, while the S&P 500 lost 10.4%.
Cloudflare will be looking to display strength as it nears its next earnings release. Our most recent consensus estimate is calling for quarterly revenue of $250.2 million, up 45.17% from the year-ago period.
NET's full-year Zacks Consensus Estimates are calling for earnings of $0.03 per share and revenue of $971.39 million. These results would represent year-over-year changes of +160% and +47.98%, respectively.
It is also important to note the recent changes to analyst estimates for Cloudflare. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 4.21% lower. Cloudflare is currently a Zacks Rank #4 (Sell).
Valuation is also important, so investors should note that Cloudflare has a Forward P/E ratio of 1674.77 right now. For comparison, its industry has an average Forward P/E of 42.42, which means Cloudflare is trading at a premium to the group.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 94, putting it in the top 38% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Cloudflare (NET) Dips More Than Broader Markets: What You Should Know
Cloudflare (NET - Free Report) closed at $53.78 in the latest trading session, marking a -1.19% move from the prior day. This change lagged the S&P 500's 1.03% loss on the day. Meanwhile, the Dow lost 1.11%, and the Nasdaq, a tech-heavy index, lost 0.06%.
Coming into today, shares of the web security and content delivery company had lost 15.47% in the past month. In that same time, the Computer and Technology sector lost 13.11%, while the S&P 500 lost 10.4%.
Cloudflare will be looking to display strength as it nears its next earnings release. Our most recent consensus estimate is calling for quarterly revenue of $250.2 million, up 45.17% from the year-ago period.
NET's full-year Zacks Consensus Estimates are calling for earnings of $0.03 per share and revenue of $971.39 million. These results would represent year-over-year changes of +160% and +47.98%, respectively.
It is also important to note the recent changes to analyst estimates for Cloudflare. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 4.21% lower. Cloudflare is currently a Zacks Rank #4 (Sell).
Valuation is also important, so investors should note that Cloudflare has a Forward P/E ratio of 1674.77 right now. For comparison, its industry has an average Forward P/E of 42.42, which means Cloudflare is trading at a premium to the group.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 94, putting it in the top 38% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.