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Cloudflare (NET) Stock Sinks As Market Gains: What You Should Know
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In the latest trading session, Cloudflare (NET - Free Report) closed at $66.57, marking a -1.04% move from the previous day. This change lagged the S&P 500's daily gain of 0.03%. Elsewhere, the Dow gained 0.01%, while the tech-heavy Nasdaq lost 1.37%.
Coming into today, shares of the web security and content delivery company had gained 3.49% in the past month. In that same time, the Computer and Technology sector gained 1.16%, while the S&P 500 gained 3.43%.
Cloudflare will be looking to display strength as it nears its next earnings release, which is expected to be August 3, 2023. Meanwhile, our latest consensus estimate is calling for revenue of $305.63 million, up 30.32% from the prior-year quarter.
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 help to show the ever-changing nature of near-term business trends. 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 remained stagnant. Cloudflare is currently a Zacks Rank #3 (Hold).
Investors should also note Cloudflare's current valuation metrics, including its Forward P/E ratio of 202.01. This represents a premium compared to its industry's average Forward P/E of 43.5.
Meanwhile, NET's PEG ratio is currently 8.08. 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. Internet - Software stocks are, on average, holding a PEG ratio of 1.8 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 77, which puts it in the top 31% 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) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Cloudflare (NET - Free Report) closed at $66.57, marking a -1.04% move from the previous day. This change lagged the S&P 500's daily gain of 0.03%. Elsewhere, the Dow gained 0.01%, while the tech-heavy Nasdaq lost 1.37%.
Coming into today, shares of the web security and content delivery company had gained 3.49% in the past month. In that same time, the Computer and Technology sector gained 1.16%, while the S&P 500 gained 3.43%.
Cloudflare will be looking to display strength as it nears its next earnings release, which is expected to be August 3, 2023. Meanwhile, our latest consensus estimate is calling for revenue of $305.63 million, up 30.32% from the prior-year quarter.
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 help to show the ever-changing nature of near-term business trends. 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 remained stagnant. Cloudflare is currently a Zacks Rank #3 (Hold).
Investors should also note Cloudflare's current valuation metrics, including its Forward P/E ratio of 202.01. This represents a premium compared to its industry's average Forward P/E of 43.5.
Meanwhile, NET's PEG ratio is currently 8.08. 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. Internet - Software stocks are, on average, holding a PEG ratio of 1.8 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 77, which puts it in the top 31% 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.