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Why the Market Dipped But Cloudflare (NET) Gained Today
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In the latest trading session, Cloudflare (NET - Free Report) closed at $358.99, marking a +1.89% move from the previous day. The stock exceeded the S&P 500, which registered a loss of 0.03% for the day. Meanwhile, the Dow experienced a drop of 0.31%, and the technology-dominated Nasdaq saw an increase of 0.01%.
Coming into today, shares of the web security and content delivery company had gained 23.67% in the past month. In that same time, the Computer and Technology sector gained 5.26%, while the S&P 500 gained 0.53%.
The investment community will be paying close attention to the earnings performance of Cloudflare in its upcoming release. It is anticipated that the company will report an EPS of $0.35, marking a 29.63% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $733.3 million, indicating a 30.47% upward movement from the same quarter last year.
NET's full-year Zacks Consensus Estimates are calling for earnings of $1.26 per share and revenue of $2.87 billion. These results would represent year-over-year changes of +35.48% and +32.54%, respectively.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Cloudflare. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Cloudflare is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Cloudflare is presently being traded at a Forward P/E ratio of 278.7. This indicates a premium in contrast to its industry's Forward P/E of 19.86.
Investors should also note that NET has a PEG ratio of 7.46 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 1.15.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 94, 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
View the Zacks #1 Rank List
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Why the Market Dipped But Cloudflare (NET) Gained Today
In the latest trading session, Cloudflare (NET - Free Report) closed at $358.99, marking a +1.89% move from the previous day. The stock exceeded the S&P 500, which registered a loss of 0.03% for the day. Meanwhile, the Dow experienced a drop of 0.31%, and the technology-dominated Nasdaq saw an increase of 0.01%.
Coming into today, shares of the web security and content delivery company had gained 23.67% in the past month. In that same time, the Computer and Technology sector gained 5.26%, while the S&P 500 gained 0.53%.
The investment community will be paying close attention to the earnings performance of Cloudflare in its upcoming release. It is anticipated that the company will report an EPS of $0.35, marking a 29.63% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $733.3 million, indicating a 30.47% upward movement from the same quarter last year.
NET's full-year Zacks Consensus Estimates are calling for earnings of $1.26 per share and revenue of $2.87 billion. These results would represent year-over-year changes of +35.48% and +32.54%, respectively.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Cloudflare. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Cloudflare is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Cloudflare is presently being traded at a Forward P/E ratio of 278.7. This indicates a premium in contrast to its industry's Forward P/E of 19.86.
Investors should also note that NET has a PEG ratio of 7.46 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 1.15.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 94, 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.
You can find more information on all of these metrics, and much more, on Zacks.com.