In the latest trading session, Cloudflare (NET – Free Report) closed at $113.99, marking a -0.64% move from the previous day. This change lagged the S&P 500’s 0.55% gain on the day. Elsewhere, the Dow saw a downswing of 0.06%, while the tech-heavy Nasdaq appreciated by 1.24%.
The upcoming earnings release of Cloudflare will be of great interest to investors. The company is forecasted to report an EPS of $0.18, showcasing a 20% upward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $451.8 million, up 24.65% from the year-ago period.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Cloudflare. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts’ confidence in the company’s business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 remained stagnant within the past month. Cloudflare currently has a Zacks Rank of #3 (Hold).
Looking at valuation, Cloudflare is presently trading at a Forward P/E ratio of 137.49. This valuation marks a premium compared to its industry’s average Forward P/E of 41.55.
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 strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don’t forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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