Cloudflare (NET) closed at $268.40 in the latest trading session, marking a -2.68% move from the prior day. The stock fell short of the S&P 500, which registered a gain of 0.42% for the day. At the same time, the Dow added 0.29%, and the tech-heavy Nasdaq gained 0.29%.
Heading into today, shares of the web security and content delivery company had gained 21.26% over the past month, outpacing the Computer and Technology sector's gain of 0.85% and the S&P 500's gain of 2.2%.
Analysts and investors alike will be keeping a close eye on the performance of Cloudflare in its upcoming earnings disclosure. On that day, Cloudflare is projected to report earnings of $0.27 per share, which would represent year-over-year growth of 28.57%. Meanwhile, our latest consensus estimate is calling for revenue of $665.42 million, up 29.88% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.2 per share and a revenue of $2.81 billion, indicating changes of +29.03% and +29.72%, respectively, from the former year.
Investors should also pay attention to any latest changes in analyst estimates for Cloudflare. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, 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. The Zacks Consensus EPS estimate has moved 283.33% higher within the past month. As of now, Cloudflare holds a Zacks Rank of #2 (Buy).
Looking at valuation, Cloudflare is presently trading at a Forward P/E ratio of 229.31. This valuation marks a premium compared to its industry average Forward P/E of 19.73.
Meanwhile, NET's PEG ratio is currently 5.31. 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. The average PEG ratio for the Internet - Software industry stood at 1.06 at the close of the market yesterday.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 92, placing it within the top 38% of over 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.
To follow NET in the coming trading sessions, be sure to utilize Zacks.com.
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Cloudflare, Inc. (NET): Free Stock Analysis Report
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