We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Cloudflare (NET) Stock Sinks As Market Gains: What You Should Know
Read MoreHide Full Article
In the latest trading session, Cloudflare (NET - Free Report) closed at $57.75, marking a -0.02% move from the previous day. This move lagged the S&P 500's daily gain of 0.4%. At the same time, the Dow added 0.13%, and the tech-heavy Nasdaq gained 0.45%.
Coming into today, shares of the web security and content delivery company had lost 7.14% in the past month. In that same time, the Computer and Technology sector lost 1.45%, while the S&P 500 lost 1.38%.
Wall Street will be looking for positivity from Cloudflare as it approaches its next earnings report date. In that report, analysts expect Cloudflare to post earnings of $0.10 per share. This would mark year-over-year growth of 66.67%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $330.54 million, up 30.21% from the year-ago period.
NET's full-year Zacks Consensus Estimates are calling for earnings of $0.36 per share and revenue of $1.29 billion. These results would represent year-over-year changes of +176.92% and +31.76%, respectively.
Investors might also notice recent changes to analyst estimates for Cloudflare. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Cloudflare is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Cloudflare currently has a Forward P/E ratio of 162.08. Its industry sports an average Forward P/E of 37.22, so we one might conclude that Cloudflare is trading at a premium comparatively.
We can also see that NET currently has a PEG ratio of 3.03. 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 industry currently had an average PEG ratio of 1.56 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 84, which puts it in the top 34% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Cloudflare (NET) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Cloudflare (NET - Free Report) closed at $57.75, marking a -0.02% move from the previous day. This move lagged the S&P 500's daily gain of 0.4%. At the same time, the Dow added 0.13%, and the tech-heavy Nasdaq gained 0.45%.
Coming into today, shares of the web security and content delivery company had lost 7.14% in the past month. In that same time, the Computer and Technology sector lost 1.45%, while the S&P 500 lost 1.38%.
Wall Street will be looking for positivity from Cloudflare as it approaches its next earnings report date. In that report, analysts expect Cloudflare to post earnings of $0.10 per share. This would mark year-over-year growth of 66.67%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $330.54 million, up 30.21% from the year-ago period.
NET's full-year Zacks Consensus Estimates are calling for earnings of $0.36 per share and revenue of $1.29 billion. These results would represent year-over-year changes of +176.92% and +31.76%, respectively.
Investors might also notice recent changes to analyst estimates for Cloudflare. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Cloudflare is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Cloudflare currently has a Forward P/E ratio of 162.08. Its industry sports an average Forward P/E of 37.22, so we one might conclude that Cloudflare is trading at a premium comparatively.
We can also see that NET currently has a PEG ratio of 3.03. 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 industry currently had an average PEG ratio of 1.56 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 84, which puts it in the top 34% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.