In the latest trading session, Cloudflare (NET - Free Report) closed at $58.29, marking a -0.83% move from the previous day. This move lagged the S&P 500's daily gain of 0.01%. Elsewhere, the Dow gained 0.39%, while the tech-heavy Nasdaq lost 0.36%.
Prior to today's trading, shares of the web security and content delivery company had gained 62.83% over the past month. This has outpaced the Computer and Technology sector's gain of 4.31% and the S&P 500's gain of 2.55% in that time.
NET will be looking to display strength as it nears its next earnings release, which is expected to be November 5, 2020. The company is expected to report EPS of -$0.05, up 68.75% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $103.12 million, up 39.46% from the prior-year quarter.
NET's full-year Zacks Consensus Estimates are calling for earnings of -$0.17 per share and revenue of $406.43 million. These results would represent year-over-year changes of +64.58% and +41.6%, respectively.
Investors should also note any recent changes to analyst estimates for NET. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. NET is holding a Zacks Rank of #3 (Hold) right now.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 168, which puts it in the bottom 34% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.