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Cloudflare (NET) Gains As Market Dips: What You Should Know
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Cloudflare (NET - Free Report) closed at $40.40 in the latest trading session, marking a +1.25% move from the prior day. This move outpaced the S&P 500's daily loss of 0.08%. Elsewhere, the Dow lost 0.34%, while the tech-heavy Nasdaq added 11.55%.
Prior to today's trading, shares of the web security and content delivery company had lost 17.6% over the past month. This has lagged the Computer and Technology sector's loss of 8.41% and the S&P 500's loss of 1.03% in that time.
Cloudflare will be looking to display strength as it nears its next earnings release, which is expected to be February 9, 2023. Our most recent consensus estimate is calling for quarterly revenue of $274.24 million, up 41.65% from the year-ago period.
Investors should also note any recent changes to analyst estimates for Cloudflare. 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.
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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Cloudflare is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Cloudflare currently has a Forward P/E ratio of 267.79. This represents a premium compared to its industry's average Forward P/E of 40.
Meanwhile, NET's PEG ratio is currently 10.71. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Software industry currently had an average PEG ratio of 2.03 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 65, putting it in the top 26% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Cloudflare (NET) Gains As Market Dips: What You Should Know
Cloudflare (NET - Free Report) closed at $40.40 in the latest trading session, marking a +1.25% move from the prior day. This move outpaced the S&P 500's daily loss of 0.08%. Elsewhere, the Dow lost 0.34%, while the tech-heavy Nasdaq added 11.55%.
Prior to today's trading, shares of the web security and content delivery company had lost 17.6% over the past month. This has lagged the Computer and Technology sector's loss of 8.41% and the S&P 500's loss of 1.03% in that time.
Cloudflare will be looking to display strength as it nears its next earnings release, which is expected to be February 9, 2023. Our most recent consensus estimate is calling for quarterly revenue of $274.24 million, up 41.65% from the year-ago period.
Investors should also note any recent changes to analyst estimates for Cloudflare. 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.
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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Cloudflare is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Cloudflare currently has a Forward P/E ratio of 267.79. This represents a premium compared to its industry's average Forward P/E of 40.
Meanwhile, NET's PEG ratio is currently 10.71. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Software industry currently had an average PEG ratio of 2.03 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 65, putting it in the top 26% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.