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Cloudflare (NET) Ascends While Market Falls: Some Facts to Note
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Cloudflare (NET - Free Report) closed the most recent trading day at $202.81, moving +2.43% from the previous trading session. The stock exceeded the S&P 500, which registered a loss of 0.34% for the day. At the same time, the Dow lost 0.94%, and the tech-heavy Nasdaq gained 0.16%.
Prior to today's trading, shares of the web security and content delivery company had lost 5.23% lagged the Computer and Technology sector's loss of 1% and the S&P 500's gain of 1.19%.
Analysts and investors alike will be keeping a close eye on the performance of Cloudflare in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.27, marking a 42.11% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $590.28 million, up 28.33% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.91 per share and a revenue of $2.14 billion, representing changes of +21.33% and 0%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Cloudflare. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, 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 currently has a Zacks Rank of #2 (Buy).
Looking at its valuation, Cloudflare is holding a Forward P/E ratio of 168.37. This valuation marks a premium compared to its industry average Forward P/E of 25.
It is also worth noting that NET currently has a PEG ratio of 6.28. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Internet - Software industry stood at 1.58 at the close of the market yesterday.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 57, finds itself in the top 24% echelons 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Cloudflare (NET) Ascends While Market Falls: Some Facts to Note
Cloudflare (NET - Free Report) closed the most recent trading day at $202.81, moving +2.43% from the previous trading session. The stock exceeded the S&P 500, which registered a loss of 0.34% for the day. At the same time, the Dow lost 0.94%, and the tech-heavy Nasdaq gained 0.16%.
Prior to today's trading, shares of the web security and content delivery company had lost 5.23% lagged the Computer and Technology sector's loss of 1% and the S&P 500's gain of 1.19%.
Analysts and investors alike will be keeping a close eye on the performance of Cloudflare in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.27, marking a 42.11% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $590.28 million, up 28.33% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.91 per share and a revenue of $2.14 billion, representing changes of +21.33% and 0%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Cloudflare. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, 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 currently has a Zacks Rank of #2 (Buy).
Looking at its valuation, Cloudflare is holding a Forward P/E ratio of 168.37. This valuation marks a premium compared to its industry average Forward P/E of 25.
It is also worth noting that NET currently has a PEG ratio of 6.28. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Internet - Software industry stood at 1.58 at the close of the market yesterday.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 57, finds itself in the top 24% echelons 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.