Cloudflare (NET) ended the recent trading session at $316.13, demonstrating a -2.53% change from the preceding day's closing price. The stock's change was less than the S&P 500's daily gain of 0.33%. At the same time, the Dow added 1.08%, and the tech-heavy Nasdaq gained 0.08%.
The web security and content delivery company's stock has dropped by 0.1% in the past month, falling short of the Computer and Technology sector's gain of 1.62% and the S&P 500's gain of 1.41%.
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 November 5, 2026. The company's upcoming EPS is projected at $0.35, signifying a 29.63% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $733.3 million, up 30.47% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $1.26 per share and a revenue of $2.87 billion, demonstrating changes of +35.48% and +32.54%, respectively, from the preceding year.
Any recent changes to analyst estimates for Cloudflare should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Over the past month, there's been no change in the Zacks Consensus EPS estimate. As of now, Cloudflare holds a Zacks Rank of #5 (Strong Sell).
In terms of valuation, Cloudflare is currently trading at a Forward P/E ratio of 256.56. Its industry sports an average Forward P/E of 20.42, so one might conclude that Cloudflare is trading at a premium comparatively.
It's also important to note that NET currently trades at a PEG ratio of 6.86. 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 was holding an average PEG ratio of 1.18 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 83, positioning it in the top 34% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Cloudflare, Inc. (NET): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).