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Cloudflare (NET) Exceeds Market Returns: Some Facts to Consider
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Cloudflare (NET - Free Report) ended the recent trading session at $331.86, demonstrating a +1.88% change from the preceding day's closing price. This change outpaced the S&P 500's 0.7% gain on the day. Elsewhere, the Dow saw an upswing of 0.28%, while the tech-heavy Nasdaq appreciated by 0.83%.
Coming into today, shares of the web security and content delivery company had lost 6.67% in the past month. In that same time, the Computer and Technology sector lost 7.7%, while the S&P 500 lost 1.21%.
The investment community will be paying close attention to the earnings performance of Cloudflare in its upcoming release. The company is slated to reveal its earnings on November 5, 2026. The company's earnings per share (EPS) are projected to be $0.35, reflecting a 29.63% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $733.3 million, up 30.47% from the prior-year quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.26 per share and a revenue of $2.87 billion, representing changes of +35.48% and +32.54%, respectively, from the prior 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. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Right now, Cloudflare possesses a Zacks Rank of #3 (Hold).
Looking at its valuation, Cloudflare is holding a Forward P/E ratio of 257.66. This valuation marks a premium compared to its industry average Forward P/E of 20.75.
It is also worth noting that NET currently has a PEG ratio of 6.89. 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. The Internet - Software industry currently had an average PEG ratio of 1.31 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 82, finds itself in the top 34% echelons 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
View the Zacks #1 Rank List
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Cloudflare (NET) Exceeds Market Returns: Some Facts to Consider
Cloudflare (NET - Free Report) ended the recent trading session at $331.86, demonstrating a +1.88% change from the preceding day's closing price. This change outpaced the S&P 500's 0.7% gain on the day. Elsewhere, the Dow saw an upswing of 0.28%, while the tech-heavy Nasdaq appreciated by 0.83%.
Coming into today, shares of the web security and content delivery company had lost 6.67% in the past month. In that same time, the Computer and Technology sector lost 7.7%, while the S&P 500 lost 1.21%.
The investment community will be paying close attention to the earnings performance of Cloudflare in its upcoming release. The company is slated to reveal its earnings on November 5, 2026. The company's earnings per share (EPS) are projected to be $0.35, reflecting a 29.63% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $733.3 million, up 30.47% from the prior-year quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.26 per share and a revenue of $2.87 billion, representing changes of +35.48% and +32.54%, respectively, from the prior 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. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Right now, Cloudflare possesses a Zacks Rank of #3 (Hold).
Looking at its valuation, Cloudflare is holding a Forward P/E ratio of 257.66. This valuation marks a premium compared to its industry average Forward P/E of 20.75.
It is also worth noting that NET currently has a PEG ratio of 6.89. 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. The Internet - Software industry currently had an average PEG ratio of 1.31 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 82, finds itself in the top 34% echelons 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.