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Cloudflare (NET) Ascends While Market Falls: Some Facts to Note

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In the latest close session, Cloudflare (NET - Free Report) was up +1.09% at $181.23. The stock's performance was ahead of the S&P 500's daily loss of 0.84%. Elsewhere, the Dow lost 0.7%, while the tech-heavy Nasdaq lost 0.91%.

The web security and content delivery company's shares have seen an increase of 14.05% over the last month, surpassing the Computer and Technology sector's loss of 0% and the S&P 500's gain of 1.44%.

Market participants will be closely following the financial results of Cloudflare in its upcoming release. The company is forecasted to report an EPS of $0.18, showcasing a 10% downward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $500.72 million, showing a 24.87% escalation compared to the year-ago quarter.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.79 per share and a revenue of $2.09 billion, representing changes of +5.33% and +25.38%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Cloudflare. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research suggests that these changes in estimates have a direct relationship with upcoming 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.87% higher within the past month. Right now, Cloudflare possesses a Zacks Rank of #3 (Hold).

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 47, putting 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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