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Cloudflare (NET) Gains As Market Dips: What You Should Know

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Cloudflare (NET - Free Report) closed at $86.56 in the latest trading session, marking a +0.41% move from the prior day. This change outpaced the S&P 500's 0.21% loss on the day. Elsewhere, the Dow lost 0.67%, while the tech-heavy Nasdaq added 0.51%.

Coming into today, shares of the web security and content delivery company had gained 30.44% in the past month. In that same time, the Computer and Technology sector gained 6.68%, while the S&P 500 gained 4%.

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 -$0.04 per share. This would mark year-over-year growth of 33.33%. Our most recent consensus estimate is calling for quarterly revenue of $118.15 million, up 40.77% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$0.13 per share and revenue of $423.24 million. These totals would mark changes of +72.92% and +47.46%, respectively, from last 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.

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, 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 has moved 1.43% higher. NET currently has a Zacks Rank of #3 (Hold).

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 178, which puts it in the bottom 31% 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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