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Cloudflare (NET) Exceeds Market Returns: Some Facts to Consider
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In the latest close session, Cloudflare (NET - Free Report) was up +1.01% at $207.07. The stock outperformed the S&P 500, which registered a daily gain of 0.8%. Elsewhere, the Dow saw a downswing of 0.16%, while the tech-heavy Nasdaq appreciated by 1.63%.
The web security and content delivery company's shares have seen a decrease of 2.44% over the last month, not keeping up with the Computer and Technology sector's gain of 12.05% and the S&P 500's gain of 8.11%.
The investment community will be paying close attention to the earnings performance of Cloudflare in its upcoming release. The company is slated to reveal its earnings on May 7, 2026. 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 $1.13 per share and revenue of $2.8 billion. These totals would mark changes of +21.51% and +29.25%, respectively, from last year.
Investors should also take note of any recent adjustments to analyst estimates for Cloudflare. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 1.82% downward. At present, Cloudflare boasts a Zacks Rank of #3 (Hold).
Looking at valuation, Cloudflare is presently trading at a Forward P/E ratio of 181.9. This expresses a premium compared to the average Forward P/E of 18.57 of its industry.
Also, we should mention that NET has a PEG ratio of 6.78. 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 1.08 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 88, positioning it in the top 37% of all 250+ industries.
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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Cloudflare (NET) Exceeds Market Returns: Some Facts to Consider
In the latest close session, Cloudflare (NET - Free Report) was up +1.01% at $207.07. The stock outperformed the S&P 500, which registered a daily gain of 0.8%. Elsewhere, the Dow saw a downswing of 0.16%, while the tech-heavy Nasdaq appreciated by 1.63%.
The web security and content delivery company's shares have seen a decrease of 2.44% over the last month, not keeping up with the Computer and Technology sector's gain of 12.05% and the S&P 500's gain of 8.11%.
The investment community will be paying close attention to the earnings performance of Cloudflare in its upcoming release. The company is slated to reveal its earnings on May 7, 2026. 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 $1.13 per share and revenue of $2.8 billion. These totals would mark changes of +21.51% and +29.25%, respectively, from last year.
Investors should also take note of any recent adjustments to analyst estimates for Cloudflare. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 1.82% downward. At present, Cloudflare boasts a Zacks Rank of #3 (Hold).
Looking at valuation, Cloudflare is presently trading at a Forward P/E ratio of 181.9. This expresses a premium compared to the average Forward P/E of 18.57 of its industry.
Also, we should mention that NET has a PEG ratio of 6.78. 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 1.08 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 88, positioning it in the top 37% of all 250+ industries.
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.