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Cloudflare (NET) Dips More Than Broader Markets: What You Should Know
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In the latest trading session, Cloudflare (NET - Free Report) closed at $64.68, marking a -0.31% move from the previous day. This change lagged the S&P 500's daily loss of 0.21%. Elsewhere, the Dow lost 0.42%, while the tech-heavy Nasdaq lost 0.64%.
Prior to today's trading, shares of the web security and content delivery company had gained 16.84% over the past month. This has outpaced the Computer and Technology sector's gain of 10.18% and the S&P 500's gain of 7.71% in that time.
Wall Street will be looking for positivity from Cloudflare as it approaches its next earnings report date. This is expected to be April 27, 2023. On that day, Cloudflare is projected to report earnings of $0.04 per share, which would represent year-over-year growth of 300%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales 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 $0.16 per share and revenue of $1.34 billion. These totals would mark changes of +23.08% and +37.24%, 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.
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. Within the past 30 days, our consensus EPS projection has moved 3.86% higher. Cloudflare currently has a Zacks Rank of #2 (Buy).
Looking at its valuation, Cloudflare is holding a Forward P/E ratio of 396.21. Its industry sports an average Forward P/E of 42.1, so we one might conclude that Cloudflare is trading at a premium comparatively.
Meanwhile, NET's PEG ratio is currently 15.85. 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. Internet - Software stocks are, on average, holding a PEG ratio of 1.71 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 49, putting it in the top 20% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Cloudflare (NET) Dips More Than Broader Markets: What You Should Know
In the latest trading session, Cloudflare (NET - Free Report) closed at $64.68, marking a -0.31% move from the previous day. This change lagged the S&P 500's daily loss of 0.21%. Elsewhere, the Dow lost 0.42%, while the tech-heavy Nasdaq lost 0.64%.
Prior to today's trading, shares of the web security and content delivery company had gained 16.84% over the past month. This has outpaced the Computer and Technology sector's gain of 10.18% and the S&P 500's gain of 7.71% in that time.
Wall Street will be looking for positivity from Cloudflare as it approaches its next earnings report date. This is expected to be April 27, 2023. On that day, Cloudflare is projected to report earnings of $0.04 per share, which would represent year-over-year growth of 300%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales 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 $0.16 per share and revenue of $1.34 billion. These totals would mark changes of +23.08% and +37.24%, 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.
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. Within the past 30 days, our consensus EPS projection has moved 3.86% higher. Cloudflare currently has a Zacks Rank of #2 (Buy).
Looking at its valuation, Cloudflare is holding a Forward P/E ratio of 396.21. Its industry sports an average Forward P/E of 42.1, so we one might conclude that Cloudflare is trading at a premium comparatively.
Meanwhile, NET's PEG ratio is currently 15.85. 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. Internet - Software stocks are, on average, holding a PEG ratio of 1.71 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 49, putting it in the top 20% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.