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Cloudflare (NET) Declines More Than Market: Some Information for Investors
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Cloudflare (NET - Free Report) closed at $184.79 in the latest trading session, marking a -10.27% move from the prior day. The stock fell short of the S&P 500, which registered a loss of 0.01% for the day. Meanwhile, the Dow experienced a rise of 0.03%, and the technology-dominated Nasdaq saw an increase of 0.17%.
Heading into today, shares of the web security and content delivery company had gained 3.17% over the past month, outpacing the Computer and Technology sector's gain of 1.46% and the S&P 500's gain of 0.78%.
Investors will be eagerly watching for the performance of Cloudflare in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on February 10, 2026. On that day, Cloudflare is projected to report earnings of $0.27 per share, which would represent year-over-year growth of 42.11%. Meanwhile, our latest consensus estimate is calling for revenue of $590.17 million, up 28.31% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $0.91 per share and revenue of $2.14 billion, indicating changes of +21.33% and 0%, respectively, compared to the previous year.
It is also important to note the recent changes to analyst estimates for Cloudflare. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Currently, Cloudflare is carrying a Zacks Rank of #3 (Hold).
Investors should also note Cloudflare's current valuation metrics, including its Forward P/E ratio of 175.13. For comparison, its industry has an average Forward P/E of 23.28, which means Cloudflare is trading at a premium to the group.
We can also see that NET currently has a PEG ratio of 6.53. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Internet - Software stocks are, on average, holding a PEG ratio of 1.37 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 77, finds itself in the top 32% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
View the Zacks #1 Rank List
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Cloudflare (NET) Declines More Than Market: Some Information for Investors
Cloudflare (NET - Free Report) closed at $184.79 in the latest trading session, marking a -10.27% move from the prior day. The stock fell short of the S&P 500, which registered a loss of 0.01% for the day. Meanwhile, the Dow experienced a rise of 0.03%, and the technology-dominated Nasdaq saw an increase of 0.17%.
Heading into today, shares of the web security and content delivery company had gained 3.17% over the past month, outpacing the Computer and Technology sector's gain of 1.46% and the S&P 500's gain of 0.78%.
Investors will be eagerly watching for the performance of Cloudflare in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on February 10, 2026. On that day, Cloudflare is projected to report earnings of $0.27 per share, which would represent year-over-year growth of 42.11%. Meanwhile, our latest consensus estimate is calling for revenue of $590.17 million, up 28.31% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $0.91 per share and revenue of $2.14 billion, indicating changes of +21.33% and 0%, respectively, compared to the previous year.
It is also important to note the recent changes to analyst estimates for Cloudflare. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Currently, Cloudflare is carrying a Zacks Rank of #3 (Hold).
Investors should also note Cloudflare's current valuation metrics, including its Forward P/E ratio of 175.13. For comparison, its industry has an average Forward P/E of 23.28, which means Cloudflare is trading at a premium to the group.
We can also see that NET currently has a PEG ratio of 6.53. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Internet - Software stocks are, on average, holding a PEG ratio of 1.37 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 77, finds itself in the top 32% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.