Cloudflare (NET) Rises Higher Than Market: Key Facts

In the latest market close, Cloudflare (NET) reached $96.08, with a +1.32% movement compared to the previous day. This move outpaced the S&P 500's daily gain of 0.74%. At the same time, the Dow lost 0.01%, and the tech-heavy Nasdaq gained 1.68%.

Shares of the web security and content delivery company witnessed a loss of 1.12% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 0.95% and the S&P 500's gain of 0.8%.

Market participants will be closely following the financial results of Cloudflare in its upcoming release. The company plans to announce its earnings on May 2, 2024. In that report, analysts expect Cloudflare to post earnings of $0.13 per share. This would mark year-over-year growth of 62.5%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $372.93 million, up 28.52% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of $0.58 per share and a revenue of $1.65 billion, demonstrating changes of +18.37% and +27.2%, respectively, from the preceding year.

Investors should also take note of any recent adjustments to analyst estimates for Cloudflare. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending 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 ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Cloudflare is holding a Zacks Rank of #2 (Buy) right now.

Looking at valuation, Cloudflare is presently trading at a Forward P/E ratio of 162.66. This expresses a premium compared to the average Forward P/E of 29.42 of its industry.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 35, putting it in the top 14% of all 250+ industries.

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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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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