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Cloudflare (NET) Stock Drops Despite Market Gains: Important Facts to Note
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Cloudflare (NET - Free Report) closed the most recent trading day at $190.55, moving -3.65% from the previous trading session. The stock's performance was behind the S&P 500's daily gain of 0.06%. Meanwhile, the Dow gained 0.41%, and the Nasdaq, a tech-heavy index, lost 0.39%.
Heading into today, shares of the web security and content delivery company had gained 7.55% over the past month, lagging the Computer and Technology sector's gain of 9.6% and outpacing the S&P 500's gain of 5.88%.
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 is expected to report EPS of $0.18, down 10% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $500.72 million, up 24.87% from the year-ago period.
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 take note of any recent adjustments to analyst estimates for Cloudflare. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 past month, the Zacks Consensus EPS estimate has remained steady. Cloudflare is currently a Zacks Rank #5 (Strong Sell).
Looking at valuation, Cloudflare is presently trading at a Forward P/E ratio of 249.6. This expresses a premium compared to the average Forward P/E of 29.18 of its industry.
Investors should also note that NET has a PEG ratio of 10.15 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Internet - Software industry currently had an average PEG ratio of 2.18 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 77, which puts it in the top 32% 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Cloudflare (NET) Stock Drops Despite Market Gains: Important Facts to Note
Cloudflare (NET - Free Report) closed the most recent trading day at $190.55, moving -3.65% from the previous trading session. The stock's performance was behind the S&P 500's daily gain of 0.06%. Meanwhile, the Dow gained 0.41%, and the Nasdaq, a tech-heavy index, lost 0.39%.
Heading into today, shares of the web security and content delivery company had gained 7.55% over the past month, lagging the Computer and Technology sector's gain of 9.6% and outpacing the S&P 500's gain of 5.88%.
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 is expected to report EPS of $0.18, down 10% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $500.72 million, up 24.87% from the year-ago period.
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 take note of any recent adjustments to analyst estimates for Cloudflare. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 past month, the Zacks Consensus EPS estimate has remained steady. Cloudflare is currently a Zacks Rank #5 (Strong Sell).
Looking at valuation, Cloudflare is presently trading at a Forward P/E ratio of 249.6. This expresses a premium compared to the average Forward P/E of 29.18 of its industry.
Investors should also note that NET has a PEG ratio of 10.15 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Internet - Software industry currently had an average PEG ratio of 2.18 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 77, which puts it in the top 32% 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.