Cloudflare (NET – Free Report) closed the latest trading day at $109.03, indicating a -1.43% change from the previous session’s end. The stock’s performance was behind the S&P 500’s daily loss of 1.07%. On the other hand, the Dow registered a loss of 0.97%, and the technology-centric Nasdaq decreased by 1.19%.
Prior to today’s trading, shares of the web security and content delivery company had gained 10.8% over the past month. This has outpaced the Computer and Technology sector’s gain of 4.8% and the S&P 500’s loss of 0.36% in that time.
The investment community will be paying close attention to the earnings performance of Cloudflare in its upcoming release. It is anticipated that the company will report an EPS of $0.18, marking a 20% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $451.8 million, up 24.65% from the year-ago period.
NET’s full-year Zacks Consensus Estimates are calling for earnings of $0.74 per share and revenue of $1.66 billion. These results would represent year-over-year changes of +51.02% and +28.12%, respectively.
Investors might also notice recent changes to analyst estimates for Cloudflare. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Within the past 30 days, our consensus EPS projection has moved 6.19% higher. Cloudflare is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Cloudflare is presently being traded at a Forward P/E ratio of 149.47. This expresses a premium compared to the average Forward P/E of 32.55 of its industry.
The Internet – Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 23, this industry ranks in the top 10% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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