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Cloudflare (NET) Dips More Than Broader Markets: What You Should Know
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Cloudflare (NET - Free Report) closed the most recent trading day at $66.54, moving -1.6% from the previous trading session. This move lagged the S&P 500's daily loss of 0.1%. At the same time, the Dow added 0.33%, and the tech-heavy Nasdaq lost 5.8%.
Heading into today, shares of the web security and content delivery company had lost 3.74% over the past month, lagging the Computer and Technology sector's gain of 3.39% and the S&P 500's gain of 3.39% 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 August 3, 2023. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $305.63 million, up 30.32% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.33 per share and revenue of $1.28 billion. These totals would mark changes of +153.85% and +31.36%, respectively, from last year.
Any recent changes to analyst estimates for Cloudflare should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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.
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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Cloudflare is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Cloudflare is holding a Forward P/E ratio of 203.06. This valuation marks a premium compared to its industry's average Forward P/E of 43.82.
Also, we should mention that NET has a PEG ratio of 8.12. 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 1.78 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 60, which puts it in the top 24% 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.
To follow NET in the coming trading sessions, be sure to utilize Zacks.com.
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Cloudflare (NET) Dips More Than Broader Markets: What You Should Know
Cloudflare (NET - Free Report) closed the most recent trading day at $66.54, moving -1.6% from the previous trading session. This move lagged the S&P 500's daily loss of 0.1%. At the same time, the Dow added 0.33%, and the tech-heavy Nasdaq lost 5.8%.
Heading into today, shares of the web security and content delivery company had lost 3.74% over the past month, lagging the Computer and Technology sector's gain of 3.39% and the S&P 500's gain of 3.39% 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 August 3, 2023. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $305.63 million, up 30.32% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.33 per share and revenue of $1.28 billion. These totals would mark changes of +153.85% and +31.36%, respectively, from last year.
Any recent changes to analyst estimates for Cloudflare should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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.
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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Cloudflare is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Cloudflare is holding a Forward P/E ratio of 203.06. This valuation marks a premium compared to its industry's average Forward P/E of 43.82.
Also, we should mention that NET has a PEG ratio of 8.12. 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 1.78 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 60, which puts it in the top 24% 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.
To follow NET in the coming trading sessions, be sure to utilize Zacks.com.