The latest trading session saw Cloudflare (NET) ending at $122.61, denoting a +1.52% adjustment from its last day's close. The stock outperformed the S&P 500, which registered a daily gain of 0.63%. At the same time, the Dow added 0.21%, and the tech-heavy Nasdaq gained 1.52%.
The the stock of web security and content delivery company has risen by 1.03% in the past month, lagging the Computer and Technology sector's gain of 1.66% and overreaching the S&P 500's loss of 0.7%.
The upcoming earnings release of Cloudflare will be of great interest to investors. The company's earnings report is expected on May 8, 2025. On that day, Cloudflare is projected to report earnings of $0.16 per share, which would represent no growth from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $468.74 million, up 23.81% from the year-ago period.
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 +25.29%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Cloudflare. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 2.35% decrease. Cloudflare currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Cloudflare currently has a Forward P/E ratio of 152.12. For comparison, its industry has an average Forward P/E of 26.31, which means Cloudflare is trading at a premium to the group.
We can additionally observe that NET currently boasts a PEG ratio of 4.03. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Internet - Software stocks are, on average, holding a PEG ratio of 2.16 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 141, this industry ranks in the bottom 43% of all industries, numbering over 250.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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