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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 $62.41, marking a -0.73% move from the previous day. This move lagged the S&P 500's daily loss of 0.6%. Elsewhere, the Dow lost 0.33%, while the tech-heavy Nasdaq lost 2.87%.
Heading into today, shares of the web security and content delivery company had gained 13.4% over the past month, outpacing the Computer and Technology sector's gain of 3.62% and the S&P 500's gain of 6.22% in that time.
Cloudflare will be looking to display strength as it nears its next earnings release, which is expected to be April 27, 2023. The company is expected to report EPS of $0.04, up 300% 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.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.16 per share and revenue of $1.34 billion, which would represent changes of +23.08% and +37.24%, respectively, from the prior year.
Any recent changes to analyst estimates for Cloudflare should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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 has moved 3.86% higher within the past month. Cloudflare is holding a Zacks Rank of #2 (Buy) right now.
Digging into valuation, Cloudflare currently has a Forward P/E ratio of 383.94. This represents a premium compared to its industry's average Forward P/E of 42.3.
Investors should also note that NET has a PEG ratio of 15.36 right now. 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 was holding an average PEG ratio of 1.71 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 62, putting it in the top 25% 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.
You can find more information on all of these metrics, and much 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 $62.41, marking a -0.73% move from the previous day. This move lagged the S&P 500's daily loss of 0.6%. Elsewhere, the Dow lost 0.33%, while the tech-heavy Nasdaq lost 2.87%.
Heading into today, shares of the web security and content delivery company had gained 13.4% over the past month, outpacing the Computer and Technology sector's gain of 3.62% and the S&P 500's gain of 6.22% in that time.
Cloudflare will be looking to display strength as it nears its next earnings release, which is expected to be April 27, 2023. The company is expected to report EPS of $0.04, up 300% 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.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.16 per share and revenue of $1.34 billion, which would represent changes of +23.08% and +37.24%, respectively, from the prior year.
Any recent changes to analyst estimates for Cloudflare should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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 has moved 3.86% higher within the past month. Cloudflare is holding a Zacks Rank of #2 (Buy) right now.
Digging into valuation, Cloudflare currently has a Forward P/E ratio of 383.94. This represents a premium compared to its industry's average Forward P/E of 42.3.
Investors should also note that NET has a PEG ratio of 15.36 right now. 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 was holding an average PEG ratio of 1.71 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 62, putting it in the top 25% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.