Cloudflare (NET) closed the most recent trading day at $200.91, moving +1.79% from the previous trading session. This move outpaced the S&P 500's daily gain of 1.2%. Elsewhere, the Dow saw an upswing of 1.79%, while the tech-heavy Nasdaq appreciated by 1.52%.
Shares of the web security and content delivery company have depreciated by 10.83% over the course of the past month, underperforming the Computer and Technology sector's gain of 8.24%, and the S&P 500's gain of 5.15%.
The investment community will be closely monitoring the performance of Cloudflare in its forthcoming earnings report. The company is scheduled to release its earnings on May 7, 2026. On that day, Cloudflare is projected to report earnings of $0.23 per share, which would represent year-over-year growth of 43.75%. Meanwhile, our latest consensus estimate is calling for revenue of $621.91 million, up 29.81% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.13 per share and revenue of $2.8 billion. These totals would mark changes of +21.51% and +29.25%, 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. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.82% decrease. Cloudflare presently features a Zacks Rank of #3 (Hold).
With respect to valuation, Cloudflare is currently being traded at a Forward P/E ratio of 175.14. This signifies a premium in comparison to the average Forward P/E of 19.02 for its industry.
One should further note that NET currently holds a PEG ratio of 6.53. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. NET's industry had an average PEG ratio of 1.08 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 91, which puts it in the top 38% 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Cloudflare, Inc. (NET): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).