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Cloudflare (NET) Advances While Market Declines: Some Information for Investors

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In the latest trading session, Cloudflare (NET - Free Report) closed at $78.60, marking a +0.85% move from the previous day. This move outpaced the S&P 500's daily loss of 0.31%. Elsewhere, the Dow gained 0.67%, while the tech-heavy Nasdaq lost 1.09%.

Shares of the web security and content delivery company have appreciated by 5.05% over the course of the past month, underperforming the Computer and Technology sector's gain of 6.41% and outperforming the S&P 500's gain of 2.73%.

Investors will be eagerly watching for the performance of Cloudflare in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.14, indicating a 40% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $394.05 million, up 27.74% from the year-ago period.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.62 per share and a revenue of $1.65 billion, representing changes of +26.53% and +27.27%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Cloudflare. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. As of now, Cloudflare holds a Zacks Rank of #3 (Hold).

Looking at its valuation, Cloudflare is holding a Forward P/E ratio of 125.91. This indicates a premium in contrast to its industry's Forward P/E of 30.05.

The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 68, positioning it in the top 27% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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 to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

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