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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 $61.72 in the latest trading session, marking a -1.66% move from the prior day. This change lagged the S&P 500's 0.07% gain on the day. Elsewhere, the Dow gained 0.02%, while the tech-heavy Nasdaq added 0.01%.
Coming into today, shares of the web security and content delivery company had gained 6.41% in the past month. In that same time, the Computer and Technology sector gained 1.5%, while the S&P 500 gained 0.38%.
Investors will be hoping for strength from Cloudflare as it approaches its next earnings release. In that report, analysts expect Cloudflare to post earnings of $0.10 per share. This would mark year-over-year growth of 66.67%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $330.54 million, up 30.21% from the year-ago period.
NET's full-year Zacks Consensus Estimates are calling for earnings of $0.36 per share and revenue of $1.29 billion. These results would represent year-over-year changes of +176.92% and +31.76%, respectively.
Investors might also notice recent changes to analyst estimates for Cloudflare. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 remained stagnant. Cloudflare currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Cloudflare is holding a Forward P/E ratio of 176.11. This represents a premium compared to its industry's average Forward P/E of 36.65.
Investors should also note that NET has a PEG ratio of 3.29 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Software industry currently had an average PEG ratio of 1.6 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 94, which puts it in the top 38% 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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Cloudflare (NET) Stock Sinks As Market Gains: What You Should Know
Cloudflare (NET - Free Report) closed at $61.72 in the latest trading session, marking a -1.66% move from the prior day. This change lagged the S&P 500's 0.07% gain on the day. Elsewhere, the Dow gained 0.02%, while the tech-heavy Nasdaq added 0.01%.
Coming into today, shares of the web security and content delivery company had gained 6.41% in the past month. In that same time, the Computer and Technology sector gained 1.5%, while the S&P 500 gained 0.38%.
Investors will be hoping for strength from Cloudflare as it approaches its next earnings release. In that report, analysts expect Cloudflare to post earnings of $0.10 per share. This would mark year-over-year growth of 66.67%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $330.54 million, up 30.21% from the year-ago period.
NET's full-year Zacks Consensus Estimates are calling for earnings of $0.36 per share and revenue of $1.29 billion. These results would represent year-over-year changes of +176.92% and +31.76%, respectively.
Investors might also notice recent changes to analyst estimates for Cloudflare. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 remained stagnant. Cloudflare currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Cloudflare is holding a Forward P/E ratio of 176.11. This represents a premium compared to its industry's average Forward P/E of 36.65.
Investors should also note that NET has a PEG ratio of 3.29 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Software industry currently had an average PEG ratio of 1.6 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 94, which puts it in the top 38% 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.