The most recent trading session ended with Cloudflare (NET) standing at $79.08, reflecting a +1.8% shift from the previouse trading day's closing. The stock outpaced the S&P 500's daily gain of 0.25%. Meanwhile, the Dow experienced a rise of 0.15%, and the technology-dominated Nasdaq saw an increase of 0.03%.
Shares of the web security and content delivery company witnessed a gain of 2.72% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 8.7% and the S&P 500's gain of 3.34%.
The upcoming earnings release of Cloudflare will be of great interest to investors. The company's upcoming EPS is projected at $0.14, signifying a 40% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $394.05 million, indicating a 27.74% increase compared to the same quarter of the previous year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $0.62 per share and a revenue of $1.65 billion, indicating changes of +26.53% and +27.27%, respectively, from the former 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. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
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.
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 an unchanged state. Cloudflare currently has a Zacks Rank of #3 (Hold).
With respect to valuation, Cloudflare is currently being traded at a Forward P/E ratio of 125.49. For comparison, its industry has an average Forward P/E of 29.7, which means Cloudflare is trading at a premium to the group.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 73, which puts it in the top 29% 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.
To follow NET in the coming trading sessions, be sure to utilize Zacks.com.
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