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Cloudflare (NET) Advances While Market Declines: Some Information for Investors
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Cloudflare (NET - Free Report) ended the recent trading session at $85.05, demonstrating a +0.46% swing from the preceding day's closing price. This change outpaced the S&P 500's 0.01% loss on the day. On the other hand, the Dow registered a gain of 0.15%, and the technology-centric Nasdaq increased by 0.36%.
The web security and content delivery company's shares have seen an increase of 19.75% over the last month, surpassing the Computer and Technology sector's gain of 3.87% and the S&P 500's gain of 5.21%.
Investors will be eagerly watching for the performance of Cloudflare in its upcoming earnings disclosure. On that day, Cloudflare is projected to report earnings of $0.12 per share, which would represent year-over-year growth of 100%. Our most recent consensus estimate is calling for quarterly revenue of $352.69 million, up 28.39% from the year-ago period.
NET's full-year Zacks Consensus Estimates are calling for earnings of $0.46 per share and revenue of $1.29 billion. These results would represent year-over-year changes of +253.85% and +31.94%, respectively.
Investors should also note any recent changes to analyst estimates for Cloudflare. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Currently, Cloudflare is carrying a Zacks Rank of #2 (Buy).
Looking at its valuation, Cloudflare is holding a Forward P/E ratio of 186.07. This represents a premium compared to its industry's average Forward P/E of 40.21.
Also, we should mention that NET has a PEG ratio of 3.48. 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 1.8 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 28, placing it within the top 12% of over 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.
To follow NET in the coming trading sessions, be sure to utilize Zacks.com.
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Cloudflare (NET) Advances While Market Declines: Some Information for Investors
Cloudflare (NET - Free Report) ended the recent trading session at $85.05, demonstrating a +0.46% swing from the preceding day's closing price. This change outpaced the S&P 500's 0.01% loss on the day. On the other hand, the Dow registered a gain of 0.15%, and the technology-centric Nasdaq increased by 0.36%.
The web security and content delivery company's shares have seen an increase of 19.75% over the last month, surpassing the Computer and Technology sector's gain of 3.87% and the S&P 500's gain of 5.21%.
Investors will be eagerly watching for the performance of Cloudflare in its upcoming earnings disclosure. On that day, Cloudflare is projected to report earnings of $0.12 per share, which would represent year-over-year growth of 100%. Our most recent consensus estimate is calling for quarterly revenue of $352.69 million, up 28.39% from the year-ago period.
NET's full-year Zacks Consensus Estimates are calling for earnings of $0.46 per share and revenue of $1.29 billion. These results would represent year-over-year changes of +253.85% and +31.94%, respectively.
Investors should also note any recent changes to analyst estimates for Cloudflare. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Currently, Cloudflare is carrying a Zacks Rank of #2 (Buy).
Looking at its valuation, Cloudflare is holding a Forward P/E ratio of 186.07. This represents a premium compared to its industry's average Forward P/E of 40.21.
Also, we should mention that NET has a PEG ratio of 3.48. 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 1.8 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 28, placing it within the top 12% of over 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.
To follow NET in the coming trading sessions, be sure to utilize Zacks.com.