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Cloudflare (NET) Registers a Bigger Fall Than the Market: Important Facts to Note
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Cloudflare (NET - Free Report) closed at $184.95 in the latest trading session, marking a -5.56% move from the prior day. The stock trailed the S&P 500, which registered a daily loss of 0.11%. Elsewhere, the Dow gained 0.91%, while the tech-heavy Nasdaq lost 0.82%.
Coming into today, shares of the web security and content delivery company had gained 15.4% in the past month. In that same time, the Computer and Technology sector gained 8.76%, while the S&P 500 gained 5.17%.
The investment community will be closely monitoring the performance of Cloudflare in its forthcoming earnings report. The company is forecasted to report an EPS of $0.18, showcasing a 10% downward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $500.72 million, indicating a 24.87% upward movement from the same quarter last 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.
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. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the 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, 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. Cloudflare is currently a Zacks Rank #3 (Hold).
In the context of valuation, Cloudflare is at present trading with a Forward P/E ratio of 247.16. This expresses a premium compared to the average Forward P/E of 29.16 of its industry.
Also, we should mention that NET has a PEG ratio of 10.06. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Internet - Software stocks are, on average, holding a PEG ratio of 2.27 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 40, placing it within the top 17% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow NET in the coming trading sessions, be sure to utilize Zacks.com.
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Cloudflare (NET) Registers a Bigger Fall Than the Market: Important Facts to Note
Cloudflare (NET - Free Report) closed at $184.95 in the latest trading session, marking a -5.56% move from the prior day. The stock trailed the S&P 500, which registered a daily loss of 0.11%. Elsewhere, the Dow gained 0.91%, while the tech-heavy Nasdaq lost 0.82%.
Coming into today, shares of the web security and content delivery company had gained 15.4% in the past month. In that same time, the Computer and Technology sector gained 8.76%, while the S&P 500 gained 5.17%.
The investment community will be closely monitoring the performance of Cloudflare in its forthcoming earnings report. The company is forecasted to report an EPS of $0.18, showcasing a 10% downward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $500.72 million, indicating a 24.87% upward movement from the same quarter last 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.
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. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the 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, 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. Cloudflare is currently a Zacks Rank #3 (Hold).
In the context of valuation, Cloudflare is at present trading with a Forward P/E ratio of 247.16. This expresses a premium compared to the average Forward P/E of 29.16 of its industry.
Also, we should mention that NET has a PEG ratio of 10.06. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Internet - Software stocks are, on average, holding a PEG ratio of 2.27 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 40, placing it within the top 17% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow NET in the coming trading sessions, be sure to utilize Zacks.com.