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

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Cloudflare (NET - Free Report) closed the most recent trading day at $181.35, moving -0.36% from the previous trading session. This change lagged the S&P 500's daily loss of 0.11%.

Prior to today's trading, shares of the web security and content delivery company had gained 34.15% over the past month. This has outpaced the Computer and Technology sector's gain of 1.9% and the S&P 500's gain of 4.61% in that time.

NET will be looking to display strength as it nears its next earnings release, which is expected to be November 4, 2021. In that report, analysts expect NET to post earnings of -$0.04 per share. This would mark a year-over-year decline of 100%. Meanwhile, our latest consensus estimate is calling for revenue of $165.87 million, up 45.3% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of -$0.12 per share and revenue of $632.43 million, which would represent changes of 0% and +46.72%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for NET. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 0.63% lower. NET currently has a Zacks Rank of #4 (Sell).

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 183, putting it in the bottom 28% 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.

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


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