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Cloudflare (NET) Laps the Stock Market: Here's Why
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Cloudflare (NET - Free Report) closed the most recent trading day at $359.49, moving +2.99% from the previous trading session. The stock's change was more than the S&P 500's daily gain of 0.66%. At the same time, the Dow added 0.18%, and the tech-heavy Nasdaq gained 1.05%.
Shares of the web security and content delivery company have appreciated by 25.15% over the course of the past month, outperforming the Computer and Technology sector's gain of 6.36%, and the S&P 500's gain of 0.55%.
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. In the meantime, our current consensus estimate forecasts the revenue to be $733.3 million, indicating a 30.47% growth compared to the corresponding quarter of the prior year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.26 per share and revenue of $2.87 billion, indicating changes of +35.48% and +32.54%, respectively, compared to the previous year.
Investors might also notice recent changes to analyst estimates for Cloudflare. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent 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, 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 past month, the Zacks Consensus EPS estimate remained stagnant. Cloudflare is holding a Zacks Rank of #3 (Hold) right now.
With respect to valuation, Cloudflare is currently being traded at a Forward P/E ratio of 276.13. This valuation marks a premium compared to its industry average Forward P/E of 19.59.
Meanwhile, NET's PEG ratio is currently 7.39. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. NET's industry had an average PEG ratio of 1.17 as of yesterday's close.
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 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.
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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Cloudflare (NET) Laps the Stock Market: Here's Why
Cloudflare (NET - Free Report) closed the most recent trading day at $359.49, moving +2.99% from the previous trading session. The stock's change was more than the S&P 500's daily gain of 0.66%. At the same time, the Dow added 0.18%, and the tech-heavy Nasdaq gained 1.05%.
Shares of the web security and content delivery company have appreciated by 25.15% over the course of the past month, outperforming the Computer and Technology sector's gain of 6.36%, and the S&P 500's gain of 0.55%.
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. In the meantime, our current consensus estimate forecasts the revenue to be $733.3 million, indicating a 30.47% growth compared to the corresponding quarter of the prior year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.26 per share and revenue of $2.87 billion, indicating changes of +35.48% and +32.54%, respectively, compared to the previous year.
Investors might also notice recent changes to analyst estimates for Cloudflare. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent 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, 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 past month, the Zacks Consensus EPS estimate remained stagnant. Cloudflare is holding a Zacks Rank of #3 (Hold) right now.
With respect to valuation, Cloudflare is currently being traded at a Forward P/E ratio of 276.13. This valuation marks a premium compared to its industry average Forward P/E of 19.59.
Meanwhile, NET's PEG ratio is currently 7.39. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. NET's industry had an average PEG ratio of 1.17 as of yesterday's close.
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 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.
You can find more information on all of these metrics, and much more, on Zacks.com.