In the latest trading session, Cloudflare (NET) closed at $170.31, marking a -6.64% move from the previous day. The stock fell short of the S&P 500, which registered a loss of 0.84% for the day. At the same time, the Dow lost 0.34%, and the tech-heavy Nasdaq lost 1.43%.
Heading into today, shares of the web security and content delivery company had lost 7.71% over the past month, lagging the Computer and Technology sector's gain of 1.75% and the S&P 500's gain of 1.8%.
The upcoming earnings release of Cloudflare will be of great interest to investors. The company's earnings report is expected on February 10, 2026. The company is forecasted to report an EPS of $0.27, showcasing a 42.11% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $590.17 million, up 28.31% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $0.92 per share and a revenue of $2.14 billion, demonstrating changes of +22.67% and 0%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Cloudflare. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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 last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Cloudflare currently has a Zacks Rank of #3 (Hold).
Looking at valuation, Cloudflare is presently trading at a Forward P/E ratio of 156.77. This signifies a premium in comparison to the average Forward P/E of 22.25 for its industry.
It is also worth noting that NET currently has a PEG ratio of 5.84. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Software industry had an average PEG ratio of 1.24 as trading concluded yesterday.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 89, this industry ranks in the top 37% 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.
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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