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Why Cloudflare (NET) Dipped More Than Broader Market Today
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In the latest trading session, Cloudflare (NET - Free Report) closed at $96.08, marking a -0.51% move from the previous day. The stock's change was less than the S&P 500's daily loss of 0.31%. Meanwhile, the Dow lost 0.41%, and the Nasdaq, a tech-heavy index, lost 0.27%.
Shares of the web security and content delivery company have depreciated by 1.91% over the course of the past month, underperforming the Computer and Technology sector's gain of 3.86% and the S&P 500's gain of 3.05%.
The upcoming earnings release of Cloudflare will be of great interest to investors. The company is predicted to post an EPS of $0.13, indicating a 62.5% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $372.93 million, up 28.52% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $0.58 per share and revenue of $1.65 billion, which would represent changes of +18.37% and +27.2%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Cloudflare. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 has moved 8.06% higher. Right now, Cloudflare possesses a Zacks Rank of #3 (Hold).
Investors should also note Cloudflare's current valuation metrics, including its Forward P/E ratio of 165.87. For comparison, its industry has an average Forward P/E of 30.73, which means Cloudflare is trading at a premium to the group.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 39, placing it within the top 16% 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Why Cloudflare (NET) Dipped More Than Broader Market Today
In the latest trading session, Cloudflare (NET - Free Report) closed at $96.08, marking a -0.51% move from the previous day. The stock's change was less than the S&P 500's daily loss of 0.31%. Meanwhile, the Dow lost 0.41%, and the Nasdaq, a tech-heavy index, lost 0.27%.
Shares of the web security and content delivery company have depreciated by 1.91% over the course of the past month, underperforming the Computer and Technology sector's gain of 3.86% and the S&P 500's gain of 3.05%.
The upcoming earnings release of Cloudflare will be of great interest to investors. The company is predicted to post an EPS of $0.13, indicating a 62.5% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $372.93 million, up 28.52% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $0.58 per share and revenue of $1.65 billion, which would represent changes of +18.37% and +27.2%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Cloudflare. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 has moved 8.06% higher. Right now, Cloudflare possesses a Zacks Rank of #3 (Hold).
Investors should also note Cloudflare's current valuation metrics, including its Forward P/E ratio of 165.87. For comparison, its industry has an average Forward P/E of 30.73, which means Cloudflare is trading at a premium to the group.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 39, placing it within the top 16% 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.