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Cloudflare (NET) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, Cloudflare (NET - Free Report) closed at $131.41, marking a -1.56% move from the previous day. This change lagged the S&P 500's 0.91% loss on the day.

Heading into today, shares of the web security and content delivery company had gained 12.98% over the past month, outpacing the Computer and Technology sector's gain of 2.86% and the S&P 500's gain of 0.01% in that time.

Wall Street will be looking for positivity from NET as it approaches its next earnings report date. In that report, analysts expect NET to post earnings of -$0.04 per share. This would mark a year-over-year decline of 100%. Our most recent consensus estimate is calling for quarterly revenue of $165.87 million, up 45.3% from the year-ago period.

NET's full-year Zacks Consensus Estimates are calling for earnings of -$0.11 per share and revenue of $632.43 million. These results would represent year-over-year changes of +8.33% and +46.72%, respectively.

It is also important to note the 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.

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 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. The Zacks Consensus EPS estimate has moved 0.47% lower within the past month. 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 205, putting it in the bottom 20% 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.

To follow NET in the coming trading sessions, be sure to utilize Zacks.com.


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