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Why the Market Dipped But Cloudflare (NET) Gained Today
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Cloudflare (NET - Free Report) closed the most recent trading day at $273.40, moving +1.7% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.28%. On the other hand, the Dow registered a loss of 1.09%, and the technology-centric Nasdaq increased by 0.2%.
The web security and content delivery company's shares have seen an increase of 13.85% over the last month, surpassing the Computer and Technology sector's loss of 1.22% and the S&P 500's gain of 1.64%.
The upcoming earnings release of Cloudflare will be of great interest to investors. It is anticipated that the company will report an EPS of $0.27, marking a 28.57% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $665.42 million, indicating a 29.88% growth compared to the corresponding quarter of the prior year.
NET's full-year Zacks Consensus Estimates are calling for earnings of $1.2 per share and revenue of $2.81 billion. These results would represent year-over-year changes of +29.03% and +29.72%, respectively.
Investors might also notice recent changes to analyst estimates for Cloudflare. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate has moved 283.33% higher within the past month. Cloudflare is currently sporting a Zacks Rank of #2 (Buy).
Looking at its valuation, Cloudflare is holding a Forward P/E ratio of 223.52. This expresses a premium compared to the average Forward P/E of 19.93 of its industry.
Investors should also note that NET has a PEG ratio of 5.18 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Internet - Software industry had an average PEG ratio of 1.1 as trading concluded yesterday.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 95, putting it in the top 39% 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
View the Zacks #1 Rank List
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Why the Market Dipped But Cloudflare (NET) Gained Today
Cloudflare (NET - Free Report) closed the most recent trading day at $273.40, moving +1.7% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.28%. On the other hand, the Dow registered a loss of 1.09%, and the technology-centric Nasdaq increased by 0.2%.
The web security and content delivery company's shares have seen an increase of 13.85% over the last month, surpassing the Computer and Technology sector's loss of 1.22% and the S&P 500's gain of 1.64%.
The upcoming earnings release of Cloudflare will be of great interest to investors. It is anticipated that the company will report an EPS of $0.27, marking a 28.57% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $665.42 million, indicating a 29.88% growth compared to the corresponding quarter of the prior year.
NET's full-year Zacks Consensus Estimates are calling for earnings of $1.2 per share and revenue of $2.81 billion. These results would represent year-over-year changes of +29.03% and +29.72%, respectively.
Investors might also notice recent changes to analyst estimates for Cloudflare. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate has moved 283.33% higher within the past month. Cloudflare is currently sporting a Zacks Rank of #2 (Buy).
Looking at its valuation, Cloudflare is holding a Forward P/E ratio of 223.52. This expresses a premium compared to the average Forward P/E of 19.93 of its industry.
Investors should also note that NET has a PEG ratio of 5.18 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Internet - Software industry had an average PEG ratio of 1.1 as trading concluded yesterday.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 95, putting it in the top 39% 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.