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Cloudflare (NET) Gains As Market Dips: What You Should Know
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In the latest trading session, Cloudflare (NET - Free Report) closed at $94.32, marking a +0.74% move from the previous day. This move outpaced the S&P 500's daily loss of 0.97%. At the same time, the Dow lost 0.96%, and the tech-heavy Nasdaq gained 0.23%.
Coming into today, shares of the web security and content delivery company had lost 35.13% in the past month. In that same time, the Computer and Technology sector lost 4.93%, while the S&P 500 lost 0.78%.
Wall Street will be looking for positivity from Cloudflare as it approaches its next earnings report date. This is expected to be February 10, 2022. In that report, analysts expect Cloudflare to post earnings of -$0.01 per share. This would mark year-over-year growth of 50%. Meanwhile, our latest consensus estimate is calling for revenue of $184.65 million, up 46.63% from the prior-year quarter.
Any recent changes to analyst estimates for Cloudflare should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 remained stagnant. Cloudflare currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Cloudflare has a Forward P/E ratio of 18726 right now. Its industry sports an average Forward P/E of 47.03, so we one might conclude that Cloudflare is trading at a premium comparatively.
It is also worth noting that NET currently has a PEG ratio of 749.04. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. NET's industry had an average PEG ratio of 2.79 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 153, which puts it in the bottom 40% 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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Cloudflare (NET) Gains As Market Dips: What You Should Know
In the latest trading session, Cloudflare (NET - Free Report) closed at $94.32, marking a +0.74% move from the previous day. This move outpaced the S&P 500's daily loss of 0.97%. At the same time, the Dow lost 0.96%, and the tech-heavy Nasdaq gained 0.23%.
Coming into today, shares of the web security and content delivery company had lost 35.13% in the past month. In that same time, the Computer and Technology sector lost 4.93%, while the S&P 500 lost 0.78%.
Wall Street will be looking for positivity from Cloudflare as it approaches its next earnings report date. This is expected to be February 10, 2022. In that report, analysts expect Cloudflare to post earnings of -$0.01 per share. This would mark year-over-year growth of 50%. Meanwhile, our latest consensus estimate is calling for revenue of $184.65 million, up 46.63% from the prior-year quarter.
Any recent changes to analyst estimates for Cloudflare should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 remained stagnant. Cloudflare currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Cloudflare has a Forward P/E ratio of 18726 right now. Its industry sports an average Forward P/E of 47.03, so we one might conclude that Cloudflare is trading at a premium comparatively.
It is also worth noting that NET currently has a PEG ratio of 749.04. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. NET's industry had an average PEG ratio of 2.79 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 153, which puts it in the bottom 40% 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.