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Cloudflare (NET) Surpasses Market Returns: Some Facts Worth Knowing
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Cloudflare (NET - Free Report) closed the most recent trading day at $63.69, moving +1.82% from the previous trading session. The stock exceeded the S&P 500, which registered a gain of 0.63% for the day. Elsewhere, the Dow gained 0.59%, while the tech-heavy Nasdaq added 0.39%.
The web security and content delivery company's shares have seen a decrease of 0.21% over the last month, surpassing the Computer and Technology sector's loss of 2.3% and the S&P 500's loss of 3.39%.
The upcoming earnings release of Cloudflare will be of great interest to investors. The company's upcoming EPS is projected at $0.10, signifying a 66.67% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $330.54 million, indicating a 30.21% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $0.36 per share and revenue of $1.29 billion, which would represent changes of +176.92% and +31.76%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Cloudflare. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Currently, Cloudflare is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, Cloudflare is currently trading at a Forward P/E ratio of 175.52. This expresses a premium compared to the average Forward P/E of 37.56 of its industry.
Investors should also note that NET has a PEG ratio of 3.28 right now. 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. The Internet - Software industry currently had an average PEG ratio of 1.52 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 63, finds itself in the top 25% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
To follow NET in the coming trading sessions, be sure to utilize Zacks.com.
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Cloudflare (NET) Surpasses Market Returns: Some Facts Worth Knowing
Cloudflare (NET - Free Report) closed the most recent trading day at $63.69, moving +1.82% from the previous trading session. The stock exceeded the S&P 500, which registered a gain of 0.63% for the day. Elsewhere, the Dow gained 0.59%, while the tech-heavy Nasdaq added 0.39%.
The web security and content delivery company's shares have seen a decrease of 0.21% over the last month, surpassing the Computer and Technology sector's loss of 2.3% and the S&P 500's loss of 3.39%.
The upcoming earnings release of Cloudflare will be of great interest to investors. The company's upcoming EPS is projected at $0.10, signifying a 66.67% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $330.54 million, indicating a 30.21% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $0.36 per share and revenue of $1.29 billion, which would represent changes of +176.92% and +31.76%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Cloudflare. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Currently, Cloudflare is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, Cloudflare is currently trading at a Forward P/E ratio of 175.52. This expresses a premium compared to the average Forward P/E of 37.56 of its industry.
Investors should also note that NET has a PEG ratio of 3.28 right now. 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. The Internet - Software industry currently had an average PEG ratio of 1.52 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 63, finds itself in the top 25% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
To follow NET in the coming trading sessions, be sure to utilize Zacks.com.