Back to top

Image: Bigstock

Cloudflare (NET) Outpaces Stock Market Gains: What You Should Know

Read MoreHide Full Article

Cloudflare (NET - Free Report) ended the recent trading session at $213.04, demonstrating a +1.44% change from the preceding day's closing price. This change outpaced the S&P 500's 1.07% gain on the day. Meanwhile, the Dow gained 1.12%, and the Nasdaq, a tech-heavy index, added 1.37%.

Coming into today, shares of the web security and content delivery company had lost 7.05% in the past month. In that same time, the Computer and Technology sector gained 2.68%, while the S&P 500 gained 1.08%.

Analysts and investors alike will be keeping a close eye on the performance of Cloudflare in its upcoming earnings disclosure. The company's earnings report is set to go public on October 30, 2025. The company's upcoming EPS is projected at $0.23, signifying a 15.00% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $544.06 million, indicating a 26.5% increase compared to the same quarter of the previous year.

For the full year, the Zacks Consensus Estimates project earnings of $0.85 per share and a revenue of $2.11 billion, demonstrating changes of +13.33% and +26.66%, 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, we can interpret positive estimate revisions as a good sign for the business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 7.71% lower within the past month. Cloudflare is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, Cloudflare is presently being traded at a Forward P/E ratio of 245.76. This valuation marks a premium compared to its industry average Forward P/E of 29.15.

Investors should also note that NET has a PEG ratio of 10.24 right now. 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. The Internet - Software industry had an average PEG ratio of 1.91 as trading concluded yesterday.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 68, which puts it in the top 28% of all 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.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Cloudflare, Inc. (NET) - free report >>

Published in