The latest trading session saw Cloudflare (NET – Free Report) ending at $115.70, denoting a +1.79% adjustment from its last day’s close. The stock outperformed the S&P 500, which registered a daily gain of 0.16%. Elsewhere, the Dow gained 0.25%, while the tech-heavy Nasdaq lost 0.06%.
Shares of the web security and content delivery company witnessed a gain of 1.04% over the previous month, beating the performance of the Computer and Technology sector with its loss of 0.39% and the S&P 500’s loss of 2.7%.
The upcoming earnings release of Cloudflare will be of great interest to investors. The company’s upcoming EPS is projected at $0.18, signifying a 20% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $451.8 million, reflecting a 24.65% rise from the equivalent quarter last year.
Any recent changes to analyst estimates for Cloudflare should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts’ favorable outlook on the company’s business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Cloudflare is currently a Zacks Rank #3 (Hold).
In terms of valuation, Cloudflare is currently trading at a Forward P/E ratio of 138.65. This valuation marks a premium compared to its industry’s average Forward P/E of 28.07.
The Internet – Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 25, 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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