Back to top

Image: Bigstock

Cloudflare (NET) Falls More Steeply Than Broader Market: What Investors Need to Know

Read MoreHide Full Article

Cloudflare (NET - Free Report) closed the most recent trading day at $78.45, moving -1.16% from the previous trading session. This move lagged the S&P 500's daily loss of 0.37%. Elsewhere, the Dow saw a downswing of 0.62%, while the tech-heavy Nasdaq depreciated by 0.19%.

Heading into today, shares of the web security and content delivery company had lost 6.29% over the past month, lagging the Computer and Technology sector's gain of 1.22% and the S&P 500's gain of 1.56% in that time.

The investment community will be paying close attention to the earnings performance of Cloudflare in its upcoming release. The company is slated to reveal its earnings on February 8, 2024. The company's upcoming EPS is projected at $0.12, signifying a 100% increase compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $352.69 million, indicating a 28.39% upward movement from the same quarter 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 a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Right now, Cloudflare possesses a Zacks Rank of #3 (Hold).

In terms of valuation, Cloudflare is presently being traded at a Forward P/E ratio of 152.34. For comparison, its industry has an average Forward P/E of 34.28, which means Cloudflare is trading at a premium to the group.

It's also important to note that NET currently trades at a PEG ratio of 2.85. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Internet - Software industry had an average PEG ratio of 1.76 as trading concluded yesterday.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 48, which puts it in the top 20% 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Cloudflare, Inc. (NET) - free report >>

Published in