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Cloudflare (NET) Outpaces Stock Market Gains: What You Should Know

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Cloudflare (NET - Free Report) closed at $34.17 in the latest trading session, marking a +1.76% move from the prior day. This change outpaced the S&P 500's 0.05% gain on the day. Meanwhile, the Dow gained 0.48%, and the Nasdaq, a tech-heavy index, lost 0.61%.

Prior to today's trading, shares of the web security and content delivery company had lost 13.57% over the past month. This has lagged the Computer and Technology sector's gain of 0.29% and the S&P 500's loss of 0.52% in that time.

Investors will be hoping for strength from NET as it approaches its next earnings release. In that report, analysts expect NET to post earnings of -$0.05 per share. This would mark year-over-year growth of 68.75%. Our most recent consensus estimate is calling for quarterly revenue of $103.12 million, up 39.46% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of -$0.17 per share and revenue of $406.43 million, which would represent changes of +64.58% and +41.6%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for NET. 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.13% lower. NET currently has a Zacks Rank of #3 (Hold).

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 170, putting it in the bottom 34% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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