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Cloudflare (NET) Dips More Than Broader Market: What You Should Know
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Cloudflare (NET - Free Report) closed at $215.42 in the latest trading session, marking a -2.68% move from the prior day. This change lagged the S&P 500's daily loss of 1.51%. Meanwhile, the Dow experienced a drop of 0.97%, and the technology-dominated Nasdaq saw a decrease of 2.01%.
Shares of the web security and content delivery company witnessed a gain of 14.91% over the previous month, beating the performance of the Computer and Technology sector with its loss of 1.84%, and the S&P 500's loss of 3.63%.
Market participants will be closely following the financial results of Cloudflare in its upcoming release. The company is expected to report EPS of $0.23, up 43.75% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $621.91 million, reflecting a 29.81% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.1 per share and revenue of $2.8 billion. These totals would mark changes of +18.28% and +29.25%, respectively, from last year.
Any recent changes to analyst estimates for Cloudflare should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been a 9.85% fall in the Zacks Consensus EPS estimate. As of now, Cloudflare holds a Zacks Rank of #3 (Hold).
Investors should also note Cloudflare's current valuation metrics, including its Forward P/E ratio of 200.54. For comparison, its industry has an average Forward P/E of 19.06, which means Cloudflare is trading at a premium to the group.
Also, we should mention that NET has a PEG ratio of 7.47. 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 Internet - Software industry had an average PEG ratio of 1.06 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 149, which puts it in the bottom 40% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Cloudflare (NET) Dips More Than Broader Market: What You Should Know
Cloudflare (NET - Free Report) closed at $215.42 in the latest trading session, marking a -2.68% move from the prior day. This change lagged the S&P 500's daily loss of 1.51%. Meanwhile, the Dow experienced a drop of 0.97%, and the technology-dominated Nasdaq saw a decrease of 2.01%.
Shares of the web security and content delivery company witnessed a gain of 14.91% over the previous month, beating the performance of the Computer and Technology sector with its loss of 1.84%, and the S&P 500's loss of 3.63%.
Market participants will be closely following the financial results of Cloudflare in its upcoming release. The company is expected to report EPS of $0.23, up 43.75% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $621.91 million, reflecting a 29.81% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.1 per share and revenue of $2.8 billion. These totals would mark changes of +18.28% and +29.25%, respectively, from last year.
Any recent changes to analyst estimates for Cloudflare should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been a 9.85% fall in the Zacks Consensus EPS estimate. As of now, Cloudflare holds a Zacks Rank of #3 (Hold).
Investors should also note Cloudflare's current valuation metrics, including its Forward P/E ratio of 200.54. For comparison, its industry has an average Forward P/E of 19.06, which means Cloudflare is trading at a premium to the group.
Also, we should mention that NET has a PEG ratio of 7.47. 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 Internet - Software industry had an average PEG ratio of 1.06 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 149, which puts it in the bottom 40% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.