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Cloudflare (NET) Gains But Lags Market: What You Should Know
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Cloudflare (NET - Free Report) closed at $54.38 in the latest trading session, marking a +1.4% move from the prior day. The stock lagged the S&P 500's daily gain of 2.37%. Meanwhile, the Dow gained 2.47%, and the Nasdaq, a tech-heavy index, lost 0.07%.
Coming into today, shares of the web security and content delivery company had lost 5.78% in the past month. In that same time, the Computer and Technology sector lost 5.85%, while the S&P 500 lost 4.82%.
Cloudflare will be looking to display strength as it nears its next earnings release, which is expected to be November 3, 2022. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $250.2 million, up 45.17% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.02 per share and revenue of $971.39 million, which would represent changes of +140% and +47.98%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Cloudflare. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.29% lower. Cloudflare is currently sporting a Zacks Rank of #4 (Sell).
In terms of valuation, Cloudflare is currently trading at a Forward P/E ratio of 2540.37. Its industry sports an average Forward P/E of 42.08, so we one might conclude that Cloudflare is trading at a premium comparatively.
Meanwhile, NET's PEG ratio is currently 101.61. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. NET's industry had an average PEG ratio of 2.07 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 71, putting it in the top 29% 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
Cloudflare (NET - Free Report) closed at $54.38 in the latest trading session, marking a +1.4% move from the prior day. The stock lagged the S&P 500's daily gain of 2.37%. Meanwhile, the Dow gained 2.47%, and the Nasdaq, a tech-heavy index, lost 0.07%.
Coming into today, shares of the web security and content delivery company had lost 5.78% in the past month. In that same time, the Computer and Technology sector lost 5.85%, while the S&P 500 lost 4.82%.
Cloudflare will be looking to display strength as it nears its next earnings release, which is expected to be November 3, 2022. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $250.2 million, up 45.17% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.02 per share and revenue of $971.39 million, which would represent changes of +140% and +47.98%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Cloudflare. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.29% lower. Cloudflare is currently sporting a Zacks Rank of #4 (Sell).
In terms of valuation, Cloudflare is currently trading at a Forward P/E ratio of 2540.37. Its industry sports an average Forward P/E of 42.08, so we one might conclude that Cloudflare is trading at a premium comparatively.
Meanwhile, NET's PEG ratio is currently 101.61. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. NET's industry had an average PEG ratio of 2.07 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 71, putting it in the top 29% 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.