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Cloudflare (NET) Stock Sinks As Market Gains: What You Should Know
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Cloudflare (NET - Free Report) closed at $61.18 in the latest trading session, marking a -0.78% move from the prior day. This change lagged the S&P 500's daily gain of 0.37%. Meanwhile, the Dow gained 0.98%, and the Nasdaq, a tech-heavy index, added 0.62%.
Coming into today, shares of the web security and content delivery company had gained 0.13% in the past month. In that same time, the Computer and Technology sector gained 10.71%, while the S&P 500 gained 3.71%.
Investors will be hoping for strength from Cloudflare as it approaches its next earnings release. In that report, analysts expect Cloudflare to post earnings of $0.04 per share. This would mark year-over-year growth of 300%. Our most recent consensus estimate is calling for quarterly revenue of $291.01 million, up 37.16% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.17 per share and revenue of $1.34 billion. These totals would mark changes of +30.77% and +37.26%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Cloudflare. These revisions help to show the ever-changing nature of near-term business trends. 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. 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. Over the past month, the Zacks Consensus EPS estimate has moved 1.3% higher. Cloudflare currently has a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that Cloudflare has a Forward P/E ratio of 373.7 right now. For comparison, its industry has an average Forward P/E of 43.25, which means Cloudflare is trading at a premium to the group.
Also, we should mention that NET has a PEG ratio of 14.95. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Software was holding an average PEG ratio of 1.74 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 51, which puts it in the top 21% 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.
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 at $61.18 in the latest trading session, marking a -0.78% move from the prior day. This change lagged the S&P 500's daily gain of 0.37%. Meanwhile, the Dow gained 0.98%, and the Nasdaq, a tech-heavy index, added 0.62%.
Coming into today, shares of the web security and content delivery company had gained 0.13% in the past month. In that same time, the Computer and Technology sector gained 10.71%, while the S&P 500 gained 3.71%.
Investors will be hoping for strength from Cloudflare as it approaches its next earnings release. In that report, analysts expect Cloudflare to post earnings of $0.04 per share. This would mark year-over-year growth of 300%. Our most recent consensus estimate is calling for quarterly revenue of $291.01 million, up 37.16% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.17 per share and revenue of $1.34 billion. These totals would mark changes of +30.77% and +37.26%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Cloudflare. These revisions help to show the ever-changing nature of near-term business trends. 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. 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. Over the past month, the Zacks Consensus EPS estimate has moved 1.3% higher. Cloudflare currently has a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that Cloudflare has a Forward P/E ratio of 373.7 right now. For comparison, its industry has an average Forward P/E of 43.25, which means Cloudflare is trading at a premium to the group.
Also, we should mention that NET has a PEG ratio of 14.95. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Software was holding an average PEG ratio of 1.74 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 51, which puts it in the top 21% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.