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Cloudflare (NET) Registers a Bigger Fall Than the Market: Important Facts to Note
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Cloudflare (NET - Free Report) ended the recent trading session at $230.97, demonstrating a -2.01% change from the preceding day's closing price. This change lagged the S&P 500's 0.57% loss on the day. Meanwhile, the Dow experienced a rise of 0.64%, and the technology-dominated Nasdaq saw a decrease of 1.15%.
Shares of the web security and content delivery company have appreciated by 16.83% over the course of the past month, outperforming the Computer and Technology sector's gain of 2.85%, and the S&P 500's gain of 2.14%.
The investment community will be closely monitoring the performance of Cloudflare in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $0.27, reflecting a 28.57% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $665.42 million, reflecting a 29.88% rise from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.2 per share and a revenue of $2.81 billion, signifying shifts of +29.03% and +29.72%, respectively, from the last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Cloudflare. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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. Over the past month, there's been a 375% rise in the Zacks Consensus EPS estimate. Cloudflare is currently sporting a Zacks Rank of #2 (Buy).
With respect to valuation, Cloudflare is currently being traded at a Forward P/E ratio of 196.43. This indicates a premium in contrast to its industry's Forward P/E of 18.65.
Meanwhile, NET's PEG ratio is currently 4.55. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 1.05.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 93, placing it within the top 39% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
View the Zacks #1 Rank List
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Cloudflare (NET) Registers a Bigger Fall Than the Market: Important Facts to Note
Cloudflare (NET - Free Report) ended the recent trading session at $230.97, demonstrating a -2.01% change from the preceding day's closing price. This change lagged the S&P 500's 0.57% loss on the day. Meanwhile, the Dow experienced a rise of 0.64%, and the technology-dominated Nasdaq saw a decrease of 1.15%.
Shares of the web security and content delivery company have appreciated by 16.83% over the course of the past month, outperforming the Computer and Technology sector's gain of 2.85%, and the S&P 500's gain of 2.14%.
The investment community will be closely monitoring the performance of Cloudflare in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $0.27, reflecting a 28.57% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $665.42 million, reflecting a 29.88% rise from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.2 per share and a revenue of $2.81 billion, signifying shifts of +29.03% and +29.72%, respectively, from the last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Cloudflare. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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. Over the past month, there's been a 375% rise in the Zacks Consensus EPS estimate. Cloudflare is currently sporting a Zacks Rank of #2 (Buy).
With respect to valuation, Cloudflare is currently being traded at a Forward P/E ratio of 196.43. This indicates a premium in contrast to its industry's Forward P/E of 18.65.
Meanwhile, NET's PEG ratio is currently 4.55. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 1.05.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 93, placing it within the top 39% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.