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Cloudflare (NET) Stock Drops Despite Market Gains: Important Facts to Note
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In the latest close session, Cloudflare (NET - Free Report) was down 2.26% at $184.14. The stock's performance was behind the S&P 500's daily gain of 0.26%. Meanwhile, the Dow gained 0.6%, and the Nasdaq, a tech-heavy index, added 0.25%.
The web security and content delivery company's stock has dropped by 1.59% in the past month, falling short of the Computer and Technology sector's gain of 1.58% and the S&P 500's gain of 1.57%.
Analysts and investors alike will be keeping a close eye on the performance of Cloudflare in its upcoming earnings disclosure. In that report, analysts expect Cloudflare to post earnings of $0.27 per share. This would mark year-over-year growth of 42.11%. Simultaneously, our latest consensus estimate expects the revenue to be $590.63 million, showing a 28.41% escalation compared to the year-ago quarter.
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 0%, respectively, from the prior year.
Any recent changes to analyst estimates for Cloudflare should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 past month, the Zacks Consensus EPS estimate remained stagnant. Cloudflare is currently sporting a Zacks Rank of #2 (Buy).
In terms of valuation, Cloudflare is presently being traded at a Forward P/E ratio of 160.2. This signifies a premium in comparison to the average Forward P/E of 23.72 for its industry.
Meanwhile, NET's PEG ratio is currently 5.97. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 1.43.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 57, putting it in the top 24% 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) Stock Drops Despite Market Gains: Important Facts to Note
In the latest close session, Cloudflare (NET - Free Report) was down 2.26% at $184.14. The stock's performance was behind the S&P 500's daily gain of 0.26%. Meanwhile, the Dow gained 0.6%, and the Nasdaq, a tech-heavy index, added 0.25%.
The web security and content delivery company's stock has dropped by 1.59% in the past month, falling short of the Computer and Technology sector's gain of 1.58% and the S&P 500's gain of 1.57%.
Analysts and investors alike will be keeping a close eye on the performance of Cloudflare in its upcoming earnings disclosure. In that report, analysts expect Cloudflare to post earnings of $0.27 per share. This would mark year-over-year growth of 42.11%. Simultaneously, our latest consensus estimate expects the revenue to be $590.63 million, showing a 28.41% escalation compared to the year-ago quarter.
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 0%, respectively, from the prior year.
Any recent changes to analyst estimates for Cloudflare should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 past month, the Zacks Consensus EPS estimate remained stagnant. Cloudflare is currently sporting a Zacks Rank of #2 (Buy).
In terms of valuation, Cloudflare is presently being traded at a Forward P/E ratio of 160.2. This signifies a premium in comparison to the average Forward P/E of 23.72 for its industry.
Meanwhile, NET's PEG ratio is currently 5.97. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 1.43.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 57, putting it in the top 24% 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.