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Cloudflare (NET) Stock Sinks As Market Gains: What You Should Know
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Cloudflare (NET - Free Report) closed the most recent trading day at $53.72, moving -1.49% from the previous trading session. This change lagged the S&P 500's daily gain of 0.89%. Meanwhile, the Dow gained 1.2%, and the Nasdaq, a tech-heavy index, lost 0.68%.
Heading into today, shares of the web security and content delivery company had lost 15.39% over the past month, lagging the Computer and Technology sector's gain of 2.42% and the S&P 500's loss of 3.9% in that time.
Investors will be hoping for strength from Cloudflare as it approaches its next earnings release. The company is expected to report EPS of $0.03, up 200% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $291.01 million, up 37.16% from the year-ago period.
NET's full-year Zacks Consensus Estimates are calling for earnings of $0.17 per share and revenue of $1.34 billion. These results would represent year-over-year changes of +30.77% and +37.26%, respectively.
Any recent changes to analyst estimates for Cloudflare should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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. The Zacks Consensus EPS estimate has moved 1.3% higher within the past month. Cloudflare is currently a Zacks Rank #2 (Buy).
Valuation is also important, so investors should note that Cloudflare has a Forward P/E ratio of 330.48 right now. For comparison, its industry has an average Forward P/E of 41.28, which means Cloudflare is trading at a premium to the group.
Also, we should mention that NET has a PEG ratio of 13.22. 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. NET's industry had an average PEG ratio of 1.62 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 66, which puts it in the top 27% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Cloudflare (NET) Stock Sinks As Market Gains: What You Should Know
Cloudflare (NET - Free Report) closed the most recent trading day at $53.72, moving -1.49% from the previous trading session. This change lagged the S&P 500's daily gain of 0.89%. Meanwhile, the Dow gained 1.2%, and the Nasdaq, a tech-heavy index, lost 0.68%.
Heading into today, shares of the web security and content delivery company had lost 15.39% over the past month, lagging the Computer and Technology sector's gain of 2.42% and the S&P 500's loss of 3.9% in that time.
Investors will be hoping for strength from Cloudflare as it approaches its next earnings release. The company is expected to report EPS of $0.03, up 200% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $291.01 million, up 37.16% from the year-ago period.
NET's full-year Zacks Consensus Estimates are calling for earnings of $0.17 per share and revenue of $1.34 billion. These results would represent year-over-year changes of +30.77% and +37.26%, respectively.
Any recent changes to analyst estimates for Cloudflare should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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. The Zacks Consensus EPS estimate has moved 1.3% higher within the past month. Cloudflare is currently a Zacks Rank #2 (Buy).
Valuation is also important, so investors should note that Cloudflare has a Forward P/E ratio of 330.48 right now. For comparison, its industry has an average Forward P/E of 41.28, which means Cloudflare is trading at a premium to the group.
Also, we should mention that NET has a PEG ratio of 13.22. 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. NET's industry had an average PEG ratio of 1.62 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 66, which puts it in the top 27% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.