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Cloudflare (NET) Beats Stock Market Upswing: What Investors Need to Know
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Cloudflare (NET - Free Report) closed the most recent trading day at $220.65, moving +2.43% from the previous trading session. The stock's change was more than the S&P 500's daily gain of 1.15%. Elsewhere, the Dow saw an upswing of 1.38%, while the tech-heavy Nasdaq appreciated by 1.38%.
Coming into today, shares of the web security and content delivery company had gained 21.61% in the past month. In that same time, the Computer and Technology sector lost 5.27%, while the S&P 500 lost 5.69%.
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 $0.23 per share. This would mark year-over-year growth of 43.75%. Meanwhile, our latest consensus estimate is calling for revenue of $621.91 million, up 29.81% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $1.1 per share and a revenue of $2.8 billion, demonstrating changes of +18.28% and +29.25%, respectively, from the preceding year.
It is also important to note the recent changes to analyst estimates for Cloudflare. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 a 9.85% decrease. Cloudflare presently features a Zacks Rank of #3 (Hold).
In terms of valuation, Cloudflare is presently being traded at a Forward P/E ratio of 195.15. This denotes a premium relative to the industry average Forward P/E of 19.04.
We can also see that NET currently has a PEG ratio of 7.27. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 1.07.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 163, positioning it in the bottom 34% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Cloudflare (NET) Beats Stock Market Upswing: What Investors Need to Know
Cloudflare (NET - Free Report) closed the most recent trading day at $220.65, moving +2.43% from the previous trading session. The stock's change was more than the S&P 500's daily gain of 1.15%. Elsewhere, the Dow saw an upswing of 1.38%, while the tech-heavy Nasdaq appreciated by 1.38%.
Coming into today, shares of the web security and content delivery company had gained 21.61% in the past month. In that same time, the Computer and Technology sector lost 5.27%, while the S&P 500 lost 5.69%.
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 $0.23 per share. This would mark year-over-year growth of 43.75%. Meanwhile, our latest consensus estimate is calling for revenue of $621.91 million, up 29.81% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $1.1 per share and a revenue of $2.8 billion, demonstrating changes of +18.28% and +29.25%, respectively, from the preceding year.
It is also important to note the recent changes to analyst estimates for Cloudflare. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 a 9.85% decrease. Cloudflare presently features a Zacks Rank of #3 (Hold).
In terms of valuation, Cloudflare is presently being traded at a Forward P/E ratio of 195.15. This denotes a premium relative to the industry average Forward P/E of 19.04.
We can also see that NET currently has a PEG ratio of 7.27. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 1.07.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 163, positioning it in the bottom 34% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.