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Cloudflare (NET) Gains But Lags Market: What You Should Know
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In the latest trading session, Cloudflare (NET - Free Report) closed at $55.79, marking a +0.87% move from the previous day. This move lagged the S&P 500's daily gain of 2.59%. At the same time, the Dow added 2.66%, and the tech-heavy Nasdaq gained 0.11%.
Prior to today's trading, shares of the web security and content delivery company had lost 5.79% over the past month. This has was narrower than the Computer and Technology sector's loss of 11.97% and the S&P 500's loss of 9.22% in that time.
Wall Street will be looking for positivity from Cloudflare as it approaches its next earnings report date. Our most recent consensus estimate is calling for quarterly revenue of $250.2 million, up 45.17% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.03 per share and revenue of $971.39 million, which would represent changes of +160% and +47.98%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Cloudflare. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about 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.
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. The Zacks Consensus EPS estimate has moved 4.21% lower within the past month. Cloudflare currently has a Zacks Rank of #4 (Sell).
Investors should also note Cloudflare's current valuation metrics, including its Forward P/E ratio of 1701.85. For comparison, its industry has an average Forward P/E of 44.3, which means Cloudflare is trading at a premium to the group.
We can also see that NET currently has a PEG ratio of 68.07. 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. The Internet - Software industry currently had an average PEG ratio of 2.31 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 93, putting it in the top 37% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Cloudflare (NET) Gains But Lags Market: What You Should Know
In the latest trading session, Cloudflare (NET - Free Report) closed at $55.79, marking a +0.87% move from the previous day. This move lagged the S&P 500's daily gain of 2.59%. At the same time, the Dow added 2.66%, and the tech-heavy Nasdaq gained 0.11%.
Prior to today's trading, shares of the web security and content delivery company had lost 5.79% over the past month. This has was narrower than the Computer and Technology sector's loss of 11.97% and the S&P 500's loss of 9.22% in that time.
Wall Street will be looking for positivity from Cloudflare as it approaches its next earnings report date. Our most recent consensus estimate is calling for quarterly revenue of $250.2 million, up 45.17% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.03 per share and revenue of $971.39 million, which would represent changes of +160% and +47.98%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Cloudflare. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about 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.
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. The Zacks Consensus EPS estimate has moved 4.21% lower within the past month. Cloudflare currently has a Zacks Rank of #4 (Sell).
Investors should also note Cloudflare's current valuation metrics, including its Forward P/E ratio of 1701.85. For comparison, its industry has an average Forward P/E of 44.3, which means Cloudflare is trading at a premium to the group.
We can also see that NET currently has a PEG ratio of 68.07. 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. The Internet - Software industry currently had an average PEG ratio of 2.31 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 93, putting it in the top 37% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.