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Cloudflare (NET) Falls More Steeply Than Broader Market: What Investors Need to Know
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In the latest close session, Cloudflare (NET - Free Report) was down 1.41% at $347.28. The stock fell short of the S&P 500, which registered a loss of 0.25% for the day. Elsewhere, the Dow saw a downswing of 0.86%, while the tech-heavy Nasdaq appreciated by 0.24%.
Coming into today, shares of the web security and content delivery company had gained 23.38% in the past month. In that same time, the Computer and Technology sector gained 4%, while the S&P 500 lost 0.42%.
Investors will be eagerly watching for the performance of Cloudflare in its upcoming earnings disclosure. 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. Simultaneously, our latest consensus estimate expects the revenue to be $733.3 million, showing a 30.47% escalation compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.26 per share and a revenue of $2.87 billion, signifying shifts of +35.48% and +32.54%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates for Cloudflare. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. At present, Cloudflare boasts a Zacks Rank of #3 (Hold).
From a valuation perspective, Cloudflare is currently exchanging hands at a Forward P/E ratio of 278.65. This represents a premium compared to its industry average Forward P/E of 18.78.
It is also worth noting that NET currently has a PEG ratio of 7.45. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. 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. Currently, this industry holds a Zacks Industry Rank of 86, positioning it in the top 35% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow NET in the coming trading sessions, be sure to utilize Zacks.com.
View the Zacks #1 Rank List
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Cloudflare (NET) Falls More Steeply Than Broader Market: What Investors Need to Know
In the latest close session, Cloudflare (NET - Free Report) was down 1.41% at $347.28. The stock fell short of the S&P 500, which registered a loss of 0.25% for the day. Elsewhere, the Dow saw a downswing of 0.86%, while the tech-heavy Nasdaq appreciated by 0.24%.
Coming into today, shares of the web security and content delivery company had gained 23.38% in the past month. In that same time, the Computer and Technology sector gained 4%, while the S&P 500 lost 0.42%.
Investors will be eagerly watching for the performance of Cloudflare in its upcoming earnings disclosure. 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. Simultaneously, our latest consensus estimate expects the revenue to be $733.3 million, showing a 30.47% escalation compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.26 per share and a revenue of $2.87 billion, signifying shifts of +35.48% and +32.54%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates for Cloudflare. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. At present, Cloudflare boasts a Zacks Rank of #3 (Hold).
From a valuation perspective, Cloudflare is currently exchanging hands at a Forward P/E ratio of 278.65. This represents a premium compared to its industry average Forward P/E of 18.78.
It is also worth noting that NET currently has a PEG ratio of 7.45. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. 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. Currently, this industry holds a Zacks Industry Rank of 86, positioning it in the top 35% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow NET in the coming trading sessions, be sure to utilize Zacks.com.