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Why Cloudflare (NET) Dipped More Than Broader Market Today
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Cloudflare (NET - Free Report) closed at $197.15 in the latest trading session, marking a -1.24% move from the prior day. The stock fell short of the S&P 500, which registered a loss of 0.74% for the day. On the other hand, the Dow registered a loss of 0.63%, and the technology-centric Nasdaq decreased by 0.76%.
The stock of web security and content delivery company has fallen by 0.81% in the past month, lagging the Computer and Technology sector's gain of 0.14% and the S&P 500's gain of 0.79%.
The upcoming earnings release of Cloudflare will be of great interest to investors. The company is expected to report EPS of $0.27, up 42.11% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $589.23 million, indicating a 28.11% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $0.91 per share and revenue of $2.14 billion, which would represent changes of +21.33% and +28.33%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Cloudflare. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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 remained stagnant within the past month. Cloudflare presently features a Zacks Rank of #2 (Buy).
In terms of valuation, Cloudflare is presently being traded at a Forward P/E ratio of 218.88. This expresses a premium compared to the average Forward P/E of 28.86 of its industry.
We can additionally observe that NET currently boasts a PEG ratio of 8.16. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Internet - Software industry stood at 1.78 at the close of the market yesterday.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 51, putting it in the top 21% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Why Cloudflare (NET) Dipped More Than Broader Market Today
Cloudflare (NET - Free Report) closed at $197.15 in the latest trading session, marking a -1.24% move from the prior day. The stock fell short of the S&P 500, which registered a loss of 0.74% for the day. On the other hand, the Dow registered a loss of 0.63%, and the technology-centric Nasdaq decreased by 0.76%.
The stock of web security and content delivery company has fallen by 0.81% in the past month, lagging the Computer and Technology sector's gain of 0.14% and the S&P 500's gain of 0.79%.
The upcoming earnings release of Cloudflare will be of great interest to investors. The company is expected to report EPS of $0.27, up 42.11% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $589.23 million, indicating a 28.11% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $0.91 per share and revenue of $2.14 billion, which would represent changes of +21.33% and +28.33%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Cloudflare. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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 remained stagnant within the past month. Cloudflare presently features a Zacks Rank of #2 (Buy).
In terms of valuation, Cloudflare is presently being traded at a Forward P/E ratio of 218.88. This expresses a premium compared to the average Forward P/E of 28.86 of its industry.
We can additionally observe that NET currently boasts a PEG ratio of 8.16. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Internet - Software industry stood at 1.78 at the close of the market yesterday.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 51, putting it in the top 21% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.