In the latest close session, Cloudflare (NET) was up +1.91% at $277.66. The stock outpaced the S&P 500's daily loss of 1.01%. Elsewhere, the Dow saw a downswing of 0.77%, while the tech-heavy Nasdaq depreciated by 1.4%.
The stock of web security and content delivery company has risen by 21.6% in the past month, leading the Computer and Technology sector's loss of 3.73% and the S&P 500's gain of 0.32%.
Investors will be eagerly watching for the performance of Cloudflare in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on August 6, 2026. The company's earnings per share (EPS) are projected to be $0.27, reflecting a 28.57% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $665.42 million, up 29.88% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.2 per share and revenue of $2.81 billion. These totals would mark changes of +29.03% and +29.72%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Cloudflare. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, there's been no change in the Zacks Consensus EPS estimate. At present, Cloudflare boasts a Zacks Rank of #2 (Buy).
Looking at its valuation, Cloudflare is holding a Forward P/E ratio of 226.74. This denotes a premium relative to the industry average Forward P/E of 20.37.
It's also important to note that NET currently trades at a PEG ratio of 5.25. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Internet - Software industry had an average PEG ratio of 1.11 as trading concluded yesterday.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 86, this industry ranks in the top 35% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Cloudflare, Inc. (NET): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).