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Cloudflare (NET) Stock Dips While Market Gains: Key Facts

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In the latest close session, Cloudflare (NET - Free Report) was down 5.98% at $181.92. The stock trailed the S&P 500, which registered a daily gain of 0.28%. On the other hand, the Dow registered a gain of 0.43%, and the technology-centric Nasdaq increased by 0.09%.

Shares of the web security and content delivery company witnessed a gain of 7.67% over the previous month, beating the performance of the Computer and Technology sector with its gain of 6.2%, and the S&P 500's gain of 4.37%.

The investment community will be closely monitoring the performance of Cloudflare in its forthcoming earnings report. The company is scheduled to release its earnings on July 31, 2025. The company's earnings per share (EPS) are projected to be $0.18, reflecting a 10% decrease from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $500.72 million, up 24.87% from the year-ago period.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $0.79 per share and revenue of $2.09 billion. These totals would mark changes of +5.33% and +25.38%, respectively, from last year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Cloudflare. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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 last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Cloudflare presently features a Zacks Rank of #5 (Strong Sell).

In terms of valuation, Cloudflare is presently being traded at a Forward P/E ratio of 244.21. This valuation marks a premium compared to its industry average Forward P/E of 29.03.

Meanwhile, NET's PEG ratio is currently 9.94. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Internet - Software stocks are, on average, holding a PEG ratio of 2.24 based on yesterday's closing prices.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 62, putting it in the top 26% 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.

To follow NET in the coming trading sessions, be sure to utilize Zacks.com.


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