Cloudflare (NET) closed the most recent trading day at $250.11, moving -6.9% from the previous trading session. The stock's performance was behind the S&P 500's daily loss of 2.65%. Meanwhile, the Dow experienced a drop of 1.35%, and the technology-dominated Nasdaq saw a decrease of 4.18%.
Prior to today's trading, shares of the web security and content delivery company had gained 4.61% lagged the Computer and Technology sector's gain of 10.37% and the S&P 500's gain of 5.47%.
Investors will be eagerly watching for the performance of Cloudflare in its upcoming earnings disclosure. On that day, Cloudflare is projected to report earnings of $0.26 per share, which would represent year-over-year growth of 23.81%. Meanwhile, our latest consensus estimate is calling for revenue of $665.37 million, up 29.87% from the prior-year quarter.
NET's full-year Zacks Consensus Estimates are calling for earnings of $1.18 per share and revenue of $2.81 billion. These results would represent year-over-year changes of +26.88% and +29.72%, respectively.
Investors should also take note of any recent adjustments to analyst estimates for Cloudflare. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 96.43% higher. Cloudflare is holding a Zacks Rank of #3 (Hold) right now.
With respect to valuation, Cloudflare is currently being traded at a Forward P/E ratio of 226.79. This denotes a premium relative to the industry average Forward P/E of 18.84.
We can additionally observe that NET currently boasts a PEG ratio of 8.45. 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 1.06 as trading concluded yesterday.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 82, placing it within the top 34% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Cloudflare, Inc. (NET): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).