Back to top

Image: Bigstock

Cloudflare (NET) Stock Moves 1.98%: What You Should Know

Read MoreHide Full Article

Cloudflare (NET - Free Report) ended the recent trading session at $190.12, demonstrating a +1.98% change from the preceding day's closing price. Elsewhere, the Dow saw a downswing of 0.25%, while the tech-heavy Nasdaq appreciated by 0.31%.

The stock of web security and content delivery company has risen by 15.25% in the past month, leading the Computer and Technology sector's gain of 7.62% and the S&P 500's gain of 5.05%.

Investors will be eagerly watching for the performance of Cloudflare in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.18, signifying a 10.00% drop compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $500.72 million, indicating a 24.87% increase compared to the same quarter of the previous year.

For the full year, the Zacks Consensus Estimates project earnings of $0.79 per share and a revenue of $2.09 billion, demonstrating changes of +5.33% and +25.38%, respectively, from the preceding year.

Investors should also pay attention to any latest changes in analyst estimates for Cloudflare. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, 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. The Zacks Consensus EPS estimate has moved 0.87% higher within the past month. Cloudflare is currently a Zacks Rank #3 (Hold).

In terms of valuation, Cloudflare is currently trading at a Forward P/E ratio of 235.3. This valuation marks a premium compared to its industry average Forward P/E of 28.31.

Investors should also note that NET has a PEG ratio of 9.57 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. NET's industry had an average PEG ratio of 2.25 as of yesterday's close.

The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 52, positioning it in the top 22% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming 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