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Cloudflare (NET) Increases Despite Market Slip: Here's What You Need to Know
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Cloudflare (NET - Free Report) closed the most recent trading day at $226.65, moving +1.42% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.01%. At the same time, the Dow added 0.14%, and the tech-heavy Nasdaq lost 0.46%.
Prior to today's trading, shares of the web security and content delivery company had gained 6.82% outpaced the Computer and Technology sector's loss of 2.57% and the S&P 500's loss of 1.4%.
The investment community will be paying close attention to the earnings performance of Cloudflare in its upcoming release. The company's upcoming EPS is projected at $0.27, signifying a 28.57% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $665.42 million, showing a 29.88% escalation compared to the year-ago quarter.
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.
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.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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, there's been a 400% rise in the Zacks Consensus EPS estimate. At present, Cloudflare boasts a Zacks Rank of #2 (Buy).
Investors should also note Cloudflare's current valuation metrics, including its Forward P/E ratio of 185.62. This signifies a premium in comparison to the average Forward P/E of 18.07 for its industry.
We can additionally observe that NET currently boasts a PEG ratio of 4.3. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 1.01.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 89, placing it within the top 37% of over 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
View the Zacks #1 Rank List
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Cloudflare (NET) Increases Despite Market Slip: Here's What You Need to Know
Cloudflare (NET - Free Report) closed the most recent trading day at $226.65, moving +1.42% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.01%. At the same time, the Dow added 0.14%, and the tech-heavy Nasdaq lost 0.46%.
Prior to today's trading, shares of the web security and content delivery company had gained 6.82% outpaced the Computer and Technology sector's loss of 2.57% and the S&P 500's loss of 1.4%.
The investment community will be paying close attention to the earnings performance of Cloudflare in its upcoming release. The company's upcoming EPS is projected at $0.27, signifying a 28.57% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $665.42 million, showing a 29.88% escalation compared to the year-ago quarter.
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.
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.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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, there's been a 400% rise in the Zacks Consensus EPS estimate. At present, Cloudflare boasts a Zacks Rank of #2 (Buy).
Investors should also note Cloudflare's current valuation metrics, including its Forward P/E ratio of 185.62. This signifies a premium in comparison to the average Forward P/E of 18.07 for its industry.
We can additionally observe that NET currently boasts a PEG ratio of 4.3. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 1.01.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 89, placing it within the top 37% of over 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.