In the latest trading session, Cloudflare (NET) closed at $193.83, marking a +1.25% move from the previous day. The stock's change was more than the S&P 500's daily gain of 0.79%. Elsewhere, the Dow saw an upswing of 0.14%, while the tech-heavy Nasdaq appreciated by 1.38%.
The stock of web security and content delivery company has fallen by 2.43% in the past month, lagging the Computer and Technology sector's loss of 0.85% and the S&P 500's gain of 0.87%.
Investors will be eagerly watching for the performance of Cloudflare in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.27, reflecting a 42.11% increase from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $589.23 million, indicating a 28.11% upward movement from the same quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $0.91 per share and a revenue of $2.14 billion, signifying shifts of +21.33% and +28.33%, respectively, from the last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Cloudflare. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 2.07% higher within the past month. As of now, Cloudflare holds a Zacks Rank of #2 (Buy).
Looking at its valuation, Cloudflare is holding a Forward P/E ratio of 211.42. This expresses a premium compared to the average Forward P/E of 28.76 of its industry.
Also, we should mention that NET has a PEG ratio of 7.88. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Internet - Software was holding an average PEG ratio of 1.87 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 60, positioning it in the top 25% of all 250+ industries.
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.
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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Cloudflare, Inc. (NET): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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