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Cloudflare (NET) Stock Moves -0.35%: What You Should Know

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In the latest trading session, Cloudflare (NET - Free Report) closed at $63.19, marking a -0.35% move from the previous day. This move was narrower than the S&P 500's daily loss of 0.45%. Elsewhere, the Dow lost 0.04%, while the tech-heavy Nasdaq added 3.58%.

Prior to today's trading, shares of the web security and content delivery company had gained 3.71% over the past month. This has lagged the Computer and Technology sector's gain of 7.46% and the S&P 500's gain of 5.01% 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 $305.63 million, up 30.32% from the prior-year quarter.

NET's full-year Zacks Consensus Estimates are calling for earnings of $0.33 per share and revenue of $1.28 billion. These results would represent year-over-year changes of +153.85% and +31.36%, respectively.

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. 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.

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 remained stagnant within the past month. Cloudflare is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note Cloudflare's current valuation metrics, including its Forward P/E ratio of 190.42. For comparison, its industry has an average Forward P/E of 40.08, which means Cloudflare is trading at a premium to the group.

It is also worth noting that NET currently has a PEG ratio of 7.62. 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 industry currently had an average PEG ratio of 1.79 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 105, putting it in the top 42% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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