Markets

Cloudflare (NET) Outpaces Stock Market Gains: What You Should Know

In the latest trading session, Cloudflare (NET) closed at $55.81, marking a +1.51% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.52%. Meanwhile, the Dow gained 0.54%, and the Nasdaq, a tech-heavy index, added 0.19%.

Prior to today's trading, shares of the web security and content delivery company had gained 37.52% over the past month. This has outpaced the Computer and Technology sector's gain of 7.19% and the S&P 500's gain of 4.79% in that time.

Investors will be hoping for strength from NET as it approaches its next earnings release, which is expected to be November 5, 2020. The company is expected to report EPS of -$0.05, up 68.75% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $103.12 million, up 39.46% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of -$0.17 per share and revenue of $406.43 million, which would represent changes of +64.58% and +41.6%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for NET. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. Within the past 30 days, our consensus EPS projection remained stagnant. NET currently has a Zacks Rank of #3 (Hold).

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 164, putting it in the bottom 36% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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