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Cloudflare (NET) Falls More Steeply Than Broader Market: What Investors Need to Know
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Cloudflare (NET - Free Report) closed at $221.32 in the latest trading session, marking a -1.48% move from the prior day. This move lagged the S&P 500's daily loss of 0.05%. Meanwhile, the Dow experienced a drop of 0.59%, and the technology-dominated Nasdaq saw an increase of 0.45%.
The web security and content delivery company's shares have seen an increase of 14.98% over the last month, surpassing the Computer and Technology sector's gain of 5.42% and the S&P 500's gain of 3.44%.
The investment community will be closely monitoring the performance of Cloudflare in its forthcoming earnings report. The company's upcoming EPS is projected at $0.23, signifying a 15.00% increase compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $544.06 million, indicating a 26.5% upward movement from the same quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $0.84 per share and revenue of $2.11 billion, indicating changes of +12% and +26.66%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Cloudflare. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Cloudflare is currently a Zacks Rank #3 (Hold).
Looking at valuation, Cloudflare is presently trading at a Forward P/E ratio of 267.92. This denotes a premium relative to the industry average Forward P/E of 32.
We can additionally observe that NET currently boasts a PEG ratio of 11.16. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 2.25.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 68, positioning it in the top 28% 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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Cloudflare (NET) Falls More Steeply Than Broader Market: What Investors Need to Know
Cloudflare (NET - Free Report) closed at $221.32 in the latest trading session, marking a -1.48% move from the prior day. This move lagged the S&P 500's daily loss of 0.05%. Meanwhile, the Dow experienced a drop of 0.59%, and the technology-dominated Nasdaq saw an increase of 0.45%.
The web security and content delivery company's shares have seen an increase of 14.98% over the last month, surpassing the Computer and Technology sector's gain of 5.42% and the S&P 500's gain of 3.44%.
The investment community will be closely monitoring the performance of Cloudflare in its forthcoming earnings report. The company's upcoming EPS is projected at $0.23, signifying a 15.00% increase compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $544.06 million, indicating a 26.5% upward movement from the same quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $0.84 per share and revenue of $2.11 billion, indicating changes of +12% and +26.66%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Cloudflare. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Cloudflare is currently a Zacks Rank #3 (Hold).
Looking at valuation, Cloudflare is presently trading at a Forward P/E ratio of 267.92. This denotes a premium relative to the industry average Forward P/E of 32.
We can additionally observe that NET currently boasts a PEG ratio of 11.16. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 2.25.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 68, positioning it in the top 28% 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.