Cloudflare (NET) closed at $61.13 in the latest trading session, marking a -0.11% move from the prior day. This change was narrower than the S&P 500's 1.13% loss on the day. Meanwhile, the Dow lost 1.01%, and the Nasdaq, a tech-heavy index, lost 0.14%.
Heading into today, shares of the web security and content delivery company had lost 6.96% over the past month, outpacing the Computer and Technology sector's loss of 11.27% and the S&P 500's loss of 7.59% in that time.
Investors will be hoping for strength from Cloudflare as it approaches its next earnings release. Meanwhile, our latest consensus estimate is calling for revenue of $250.2 million, up 45.17% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.03 per share and revenue of $971.39 million. These totals would mark changes of +160% and +47.98%, respectively, from last year.
Any recent changes to analyst estimates for Cloudflare should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate has moved 4.21% lower within the past month. Cloudflare is currently a Zacks Rank #4 (Sell).
Digging into valuation, Cloudflare currently has a Forward P/E ratio of 1883.08. Its industry sports an average Forward P/E of 43.06, so we one might conclude that Cloudflare is trading at a premium comparatively.
Meanwhile, NET's PEG ratio is currently 75.32. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. NET's industry had an average PEG ratio of 2.51 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 139, putting it in the bottom 45% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Special Report: The Top 5 IPOs for Your Portfolio
Today, you have a chance to get in on the ground floor of one of the best investment opportunities of the year. As the world continues to benefit from an ever-evolving internet, a handful of innovative tech companies are on the brink of reaping immense rewards - and you can put yourself in a position to cash in. One is set to disrupt the online communication industry. Brilliantly designed for creating online communities, this stock is poised to explode when made public. With the strength of our economy and record amounts of cash flooding into IPOs, you don’t want to miss this opportunity.>>See Zacks’ Hottest IPOs Now
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Cloudflare, Inc. (NET): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.