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Cloudflare (NET) Advances While Market Declines: Some Information for Investors
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The most recent trading session ended with Cloudflare (NET - Free Report) standing at $64.63, reflecting a +1.76% shift from the previouse trading day's closing. This move outpaced the S&P 500's daily loss of 0.01%. Meanwhile, the Dow gained 0.04%, and the Nasdaq, a tech-heavy index, lost 0.25%.
The web security and content delivery company's stock has climbed by 2.9% in the past month, exceeding the Computer and Technology sector's loss of 0.05% and the S&P 500's loss of 1.6%.
Analysts and investors alike will be keeping a close eye on the performance of Cloudflare in its upcoming earnings disclosure. The company's earnings report is set to go public on November 2, 2023. It is anticipated that the company will report an EPS of $0.10, marking a 66.67% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $330.54 million, reflecting a 30.21% rise from the equivalent quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.37 per share and a revenue of $1.29 billion, representing changes of +184.62% and +31.76%, respectively, from the prior year.
Any recent changes to analyst estimates for Cloudflare should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 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 remained steady. Right now, Cloudflare possesses a Zacks Rank of #4 (Sell).
From a valuation perspective, Cloudflare is currently exchanging hands at a Forward P/E ratio of 170.73. This represents a premium compared to its industry's average Forward P/E of 36.85.
We can additionally observe that NET currently boasts a PEG ratio of 3.19. 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 had an average PEG ratio of 1.52 as trading concluded yesterday.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 74, finds itself in the top 30% echelons of all 250+ industries.
The Zacks Industry Rank is ordered 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.
To follow NET in the coming trading sessions, be sure to utilize Zacks.com.
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Cloudflare (NET) Advances While Market Declines: Some Information for Investors
The most recent trading session ended with Cloudflare (NET - Free Report) standing at $64.63, reflecting a +1.76% shift from the previouse trading day's closing. This move outpaced the S&P 500's daily loss of 0.01%. Meanwhile, the Dow gained 0.04%, and the Nasdaq, a tech-heavy index, lost 0.25%.
The web security and content delivery company's stock has climbed by 2.9% in the past month, exceeding the Computer and Technology sector's loss of 0.05% and the S&P 500's loss of 1.6%.
Analysts and investors alike will be keeping a close eye on the performance of Cloudflare in its upcoming earnings disclosure. The company's earnings report is set to go public on November 2, 2023. It is anticipated that the company will report an EPS of $0.10, marking a 66.67% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $330.54 million, reflecting a 30.21% rise from the equivalent quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.37 per share and a revenue of $1.29 billion, representing changes of +184.62% and +31.76%, respectively, from the prior year.
Any recent changes to analyst estimates for Cloudflare should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 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 remained steady. Right now, Cloudflare possesses a Zacks Rank of #4 (Sell).
From a valuation perspective, Cloudflare is currently exchanging hands at a Forward P/E ratio of 170.73. This represents a premium compared to its industry's average Forward P/E of 36.85.
We can additionally observe that NET currently boasts a PEG ratio of 3.19. 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 had an average PEG ratio of 1.52 as trading concluded yesterday.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 74, finds itself in the top 30% echelons of all 250+ industries.
The Zacks Industry Rank is ordered 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.
To follow NET in the coming trading sessions, be sure to utilize Zacks.com.