Cloudflare (NET) closed at $182.78 in the latest trading session, marking a -2.24% move from the prior day. The stock fell short of the S&P 500, which registered a gain of 0.65% for the day. Elsewhere, the Dow gained 0.48%, while the tech-heavy Nasdaq added 0.82%.
Shares of the web security and content delivery company witnessed a loss of 10.09% over the previous month, trailing the performance of the Computer and Technology sector with its loss of 1.6%, and the S&P 500's gain of 1.15%.
The investment community will be paying close attention to the earnings performance of Cloudflare in its upcoming release. On that day, Cloudflare is projected to report earnings of $0.27 per share, which would represent year-over-year growth of 42.11%. Our most recent consensus estimate is calling for quarterly revenue of $590.63 million, up 28.41% from the year-ago period.
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 0%, respectively, from the last year.
Investors should also take note of any recent adjustments to analyst estimates for Cloudflare. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Currently, Cloudflare is carrying a Zacks Rank of #2 (Buy).
In terms of valuation, Cloudflare is presently being traded at a Forward P/E ratio of 158.98. Its industry sports an average Forward P/E of 24.73, so one might conclude that Cloudflare is trading at a premium comparatively.
We can also see that NET currently has a PEG ratio of 5.93. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. NET's industry had an average PEG ratio of 1.51 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 53, finds itself in the top 22% echelons 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming 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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