In the latest close session, Cloudflare (NET) was up +2.23% at $186.97. The stock outperformed the S&P 500, which registered a daily loss of 0.4%. On the other hand, the Dow registered a loss of 0.98%, and the technology-centric Nasdaq increased by 0.18%.
Shares of the web security and content delivery company witnessed a gain of 2.02% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 6.34%, and the S&P 500's gain of 4.97%.
Investors will be eagerly watching for the performance of Cloudflare in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on July 31, 2025. It is anticipated that the company will report an EPS of $0.18, marking a 10% fall compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $500.72 million, showing a 24.87% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $0.79 per share and revenue of $2.09 billion, which would represent changes of +5.33% and +25.38%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Cloudflare. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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, there's been no change in the Zacks Consensus EPS estimate. At present, Cloudflare boasts a Zacks Rank of #5 (Strong Sell).
Valuation is also important, so investors should note that Cloudflare has a Forward P/E ratio of 230.85 right now. This denotes a premium relative to the industry average Forward P/E of 28.28.
We can also see that NET currently has a PEG ratio of 9.39. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. NET's industry had an average PEG ratio of 2.18 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 64, positioning it in the top 26% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Cloudflare, Inc. (NET): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
