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Cloudflare (NET) Stock Sinks As Market Gains: What You Should Know
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Cloudflare (NET - Free Report) closed at $48.65 in the latest trading session, marking a -0.06% move from the prior day. This move lagged the S&P 500's daily gain of 1.21%. Elsewhere, the Dow gained 1.03%, while the tech-heavy Nasdaq added 0.16%.
Coming into today, shares of the web security and content delivery company had gained 6.13% in the past month. In that same time, the Computer and Technology sector gained 2.22%, while the S&P 500 gained 3.2%.
Wall Street will be looking for positivity from Cloudflare as it approaches its next earnings report date. This is expected to be August 4, 2022. In that report, analysts expect Cloudflare to post earnings of -$0.01 per share. This would mark year-over-year growth of 50%. Our most recent consensus estimate is calling for quarterly revenue of $227.52 million, up 49.26% from the year-ago period.
NET's full-year Zacks Consensus Estimates are calling for earnings of $0.03 per share and revenue of $956.04 million. These results would represent year-over-year changes of +160% and +45.64%, respectively.
Any recent changes to analyst estimates for Cloudflare should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.3% lower. Cloudflare is currently a Zacks Rank #4 (Sell).
Valuation is also important, so investors should note that Cloudflare has a Forward P/E ratio of 1947.2 right now. For comparison, its industry has an average Forward P/E of 43.37, which means Cloudflare is trading at a premium to the group.
Investors should also note that NET has a PEG ratio of 77.89 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Software was holding an average PEG ratio of 2.32 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 153, which puts it in the bottom 40% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. 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.
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Cloudflare (NET) Stock Sinks As Market Gains: What You Should Know
Cloudflare (NET - Free Report) closed at $48.65 in the latest trading session, marking a -0.06% move from the prior day. This move lagged the S&P 500's daily gain of 1.21%. Elsewhere, the Dow gained 1.03%, while the tech-heavy Nasdaq added 0.16%.
Coming into today, shares of the web security and content delivery company had gained 6.13% in the past month. In that same time, the Computer and Technology sector gained 2.22%, while the S&P 500 gained 3.2%.
Wall Street will be looking for positivity from Cloudflare as it approaches its next earnings report date. This is expected to be August 4, 2022. In that report, analysts expect Cloudflare to post earnings of -$0.01 per share. This would mark year-over-year growth of 50%. Our most recent consensus estimate is calling for quarterly revenue of $227.52 million, up 49.26% from the year-ago period.
NET's full-year Zacks Consensus Estimates are calling for earnings of $0.03 per share and revenue of $956.04 million. These results would represent year-over-year changes of +160% and +45.64%, respectively.
Any recent changes to analyst estimates for Cloudflare should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.3% lower. Cloudflare is currently a Zacks Rank #4 (Sell).
Valuation is also important, so investors should note that Cloudflare has a Forward P/E ratio of 1947.2 right now. For comparison, its industry has an average Forward P/E of 43.37, which means Cloudflare is trading at a premium to the group.
Investors should also note that NET has a PEG ratio of 77.89 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Software was holding an average PEG ratio of 2.32 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 153, which puts it in the bottom 40% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. 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.