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Cloudflare (NET) Stock Sinks As Market Gains: Here's Why
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The most recent trading session ended with Cloudflare (NET - Free Report) standing at $87.68, reflecting a -0.23% shift from the previouse trading day's closing. The stock's performance was behind the S&P 500's daily gain of 0.02%. Meanwhile, the Dow experienced a drop of 0.11%, and the technology-dominated Nasdaq saw an increase of 0.1%.
Prior to today's trading, shares of the web security and content delivery company had lost 11.3% over the past month. This has lagged the Computer and Technology sector's loss of 5.13% and the S&P 500's loss of 3.01% in that time.
Market participants will be closely following the financial results of Cloudflare in its upcoming release. The company plans to announce its earnings on May 2, 2024. The company is expected to report EPS of $0.13, up 62.5% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $372.93 million, showing a 28.52% escalation compared to the year-ago 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.
Investors should also pay attention to any latest changes in analyst estimates for Cloudflare. 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.
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 past month, there's been no change in the Zacks Consensus EPS estimate. Right now, Cloudflare possesses a Zacks Rank of #3 (Hold).
From a valuation perspective, Cloudflare is currently exchanging hands at a Forward P/E ratio of 150.74. This signifies a premium in comparison to the average Forward P/E of 28.83 for its industry.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 63, positioning it in the top 25% of all 250+ industries.
The Zacks Industry Rank is ordered 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.
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Cloudflare (NET) Stock Sinks As Market Gains: Here's Why
The most recent trading session ended with Cloudflare (NET - Free Report) standing at $87.68, reflecting a -0.23% shift from the previouse trading day's closing. The stock's performance was behind the S&P 500's daily gain of 0.02%. Meanwhile, the Dow experienced a drop of 0.11%, and the technology-dominated Nasdaq saw an increase of 0.1%.
Prior to today's trading, shares of the web security and content delivery company had lost 11.3% over the past month. This has lagged the Computer and Technology sector's loss of 5.13% and the S&P 500's loss of 3.01% in that time.
Market participants will be closely following the financial results of Cloudflare in its upcoming release. The company plans to announce its earnings on May 2, 2024. The company is expected to report EPS of $0.13, up 62.5% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $372.93 million, showing a 28.52% escalation compared to the year-ago 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.
Investors should also pay attention to any latest changes in analyst estimates for Cloudflare. 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.
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 past month, there's been no change in the Zacks Consensus EPS estimate. Right now, Cloudflare possesses a Zacks Rank of #3 (Hold).
From a valuation perspective, Cloudflare is currently exchanging hands at a Forward P/E ratio of 150.74. This signifies a premium in comparison to the average Forward P/E of 28.83 for its industry.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 63, positioning it in the top 25% of all 250+ industries.
The Zacks Industry Rank is ordered 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.