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Why Cloudflare (NET) Dipped More Than Broader Market Today
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Cloudflare (NET - Free Report) ended the recent trading session at $194.63, demonstrating a -4.13% change from the preceding day's closing price. The stock fell short of the S&P 500, which registered a loss of 0.4% for the day. Elsewhere, the Dow gained 0.11%, while the tech-heavy Nasdaq lost 0.73%.
Prior to today's trading, shares of the web security and content delivery company had gained 17.91% outpaced the Computer and Technology sector's loss of 8.37% and the S&P 500's loss of 7.34%.
The upcoming earnings release of Cloudflare will be of great interest to investors. The company's earnings per share (EPS) are projected to be $0.23, reflecting a 43.75% increase from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $621.91 million, indicating a 29.81% increase compared to the same quarter of the previous year.
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. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. As of now, Cloudflare holds a Zacks Rank of #3 (Hold).
With respect to valuation, Cloudflare is currently being traded at a Forward P/E ratio of 183.92. This expresses a premium compared to the average Forward P/E of 18.36 of its industry.
One should further note that NET currently holds a PEG ratio of 6.86. 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. The Internet - Software industry currently had an average PEG ratio of 1.02 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 153, this industry ranks in the bottom 38% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our individual 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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Why Cloudflare (NET) Dipped More Than Broader Market Today
Cloudflare (NET - Free Report) ended the recent trading session at $194.63, demonstrating a -4.13% change from the preceding day's closing price. The stock fell short of the S&P 500, which registered a loss of 0.4% for the day. Elsewhere, the Dow gained 0.11%, while the tech-heavy Nasdaq lost 0.73%.
Prior to today's trading, shares of the web security and content delivery company had gained 17.91% outpaced the Computer and Technology sector's loss of 8.37% and the S&P 500's loss of 7.34%.
The upcoming earnings release of Cloudflare will be of great interest to investors. The company's earnings per share (EPS) are projected to be $0.23, reflecting a 43.75% increase from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $621.91 million, indicating a 29.81% increase compared to the same quarter of the previous year.
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. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. As of now, Cloudflare holds a Zacks Rank of #3 (Hold).
With respect to valuation, Cloudflare is currently being traded at a Forward P/E ratio of 183.92. This expresses a premium compared to the average Forward P/E of 18.36 of its industry.
One should further note that NET currently holds a PEG ratio of 6.86. 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. The Internet - Software industry currently had an average PEG ratio of 1.02 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 153, this industry ranks in the bottom 38% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our individual 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.