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

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Cloudflare (NET - Free Report) closed at $101.68 in the latest trading session, marking a +0.98% move from the prior day. The stock outpaced the S&P 500's daily loss of 1.31%.

Heading into today, shares of the web security and content delivery company had gained 35.15% over the past month, outpacing the Computer and Technology sector's gain of 7.7% and the S&P 500's gain of 1.56% in that time.

NET will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of -$0.04, down 33.33% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $146.22 million, up 46.63% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of -$0.11 per share and revenue of $612.16 million, which would represent changes of +8.33% and +42.01%, 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 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. 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 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 remained stagnant. NET is holding a Zacks Rank of #4 (Sell) right now.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 211, putting it in the bottom 17% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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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