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Cloudflare (NET) Stock Moves -1.58%: What You Should Know
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In the latest close session, Cloudflare (NET - Free Report) was down 1.58% at $242.41. On the other hand, the Dow registered a gain of 1.14%, and the technology-centric Nasdaq decreased by 0.8%.
Coming into today, shares of the web security and content delivery company had lost 7.17% in the past month. In that same time, the Computer and Technology sector lost 5.47%, while the S&P 500 lost 1.43%.
The investment community will be paying close attention to the earnings performance of Cloudflare in its upcoming release. On that day, Cloudflare is projected to report earnings of $0.27 per share, which would represent year-over-year growth of 28.57%. Meanwhile, the latest consensus estimate predicts the revenue to be $665.42 million, indicating a 29.88% increase compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.2 per share and a revenue of $2.81 billion, representing changes of +29.03% and +29.72%, respectively, from the prior year.
Any recent changes to analyst estimates for Cloudflare should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 283.33% increase. Cloudflare currently has a Zacks Rank of #2 (Buy).
Looking at its valuation, Cloudflare is holding a Forward P/E ratio of 204.79. For comparison, its industry has an average Forward P/E of 19.52, which means Cloudflare is trading at a premium to the group.
We can also see that NET currently has a PEG ratio of 4.74. 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. Internet - Software stocks are, on average, holding a PEG ratio of 1.09 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 81, positioning it in the top 33% of all 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
View the Zacks #1 Rank List
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Cloudflare (NET) Stock Moves -1.58%: What You Should Know
In the latest close session, Cloudflare (NET - Free Report) was down 1.58% at $242.41. On the other hand, the Dow registered a gain of 1.14%, and the technology-centric Nasdaq decreased by 0.8%.
Coming into today, shares of the web security and content delivery company had lost 7.17% in the past month. In that same time, the Computer and Technology sector lost 5.47%, while the S&P 500 lost 1.43%.
The investment community will be paying close attention to the earnings performance of Cloudflare in its upcoming release. On that day, Cloudflare is projected to report earnings of $0.27 per share, which would represent year-over-year growth of 28.57%. Meanwhile, the latest consensus estimate predicts the revenue to be $665.42 million, indicating a 29.88% increase compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.2 per share and a revenue of $2.81 billion, representing changes of +29.03% and +29.72%, respectively, from the prior year.
Any recent changes to analyst estimates for Cloudflare should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 283.33% increase. Cloudflare currently has a Zacks Rank of #2 (Buy).
Looking at its valuation, Cloudflare is holding a Forward P/E ratio of 204.79. For comparison, its industry has an average Forward P/E of 19.52, which means Cloudflare is trading at a premium to the group.
We can also see that NET currently has a PEG ratio of 4.74. 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. Internet - Software stocks are, on average, holding a PEG ratio of 1.09 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 81, positioning it in the top 33% of all 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.