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Cloudflare (NET) Falls More Steeply Than Broader Market: What Investors Need to Know
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Cloudflare (NET - Free Report) closed the most recent trading day at $167.02, moving -13.48% from the previous trading session. The stock's change was less than the S&P 500's daily loss of 0.11%. Meanwhile, the Dow experienced a drop of 0.56%, and the technology-dominated Nasdaq saw an increase of 0.35%.
The web security and content delivery company's stock has dropped by 8.99% in the past month, falling short of the Computer and Technology sector's gain of 0.88% and the S&P 500's gain of 0.51%.
Market participants will be closely following the financial results of Cloudflare in its upcoming release. The company is forecasted to report an EPS of $0.23, showcasing a 43.75% upward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $621.91 million, indicating a 29.81% upward movement from the same quarter last 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.
Investors should also take note of any recent adjustments to analyst estimates for Cloudflare. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Currently, Cloudflare is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, Cloudflare is currently trading at a Forward P/E ratio of 174.89. This indicates a premium in contrast to its industry's Forward P/E of 17.88.
It is also worth noting that NET currently has a PEG ratio of 6.52. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. NET's industry had an average PEG ratio of 1 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 95, placing it within the top 39% of over 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) Falls More Steeply Than Broader Market: What Investors Need to Know
Cloudflare (NET - Free Report) closed the most recent trading day at $167.02, moving -13.48% from the previous trading session. The stock's change was less than the S&P 500's daily loss of 0.11%. Meanwhile, the Dow experienced a drop of 0.56%, and the technology-dominated Nasdaq saw an increase of 0.35%.
The web security and content delivery company's stock has dropped by 8.99% in the past month, falling short of the Computer and Technology sector's gain of 0.88% and the S&P 500's gain of 0.51%.
Market participants will be closely following the financial results of Cloudflare in its upcoming release. The company is forecasted to report an EPS of $0.23, showcasing a 43.75% upward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $621.91 million, indicating a 29.81% upward movement from the same quarter last 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.
Investors should also take note of any recent adjustments to analyst estimates for Cloudflare. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Currently, Cloudflare is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, Cloudflare is currently trading at a Forward P/E ratio of 174.89. This indicates a premium in contrast to its industry's Forward P/E of 17.88.
It is also worth noting that NET currently has a PEG ratio of 6.52. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. NET's industry had an average PEG ratio of 1 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 95, placing it within the top 39% of over 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.