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Cloudflare (NET) Falls More Steeply Than Broader Market: What Investors Need to Know
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Cloudflare (NET - Free Report) closed the latest trading day at $83.26, indicating a -1.68% change from the previous session's end. This change lagged the S&P 500's 0.28% loss on the day. Elsewhere, the Dow lost 0.06%, while the tech-heavy Nasdaq lost 0.56%.
The web security and content delivery company's shares have seen an increase of 9.76% over the last month, surpassing the Computer and Technology sector's gain of 4.68% and the S&P 500's gain of 5.24%.
The investment community will be closely monitoring the performance of Cloudflare in its forthcoming earnings report. On that day, Cloudflare is projected to report earnings of $0.12 per share, which would represent year-over-year growth of 100%. At the same time, our most recent consensus estimate is projecting a revenue of $352.69 million, reflecting a 28.39% rise from the equivalent quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.46 per share and a revenue of $1.29 billion, representing changes of +253.85% and +31.94%, 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Cloudflare is currently a Zacks Rank #3 (Hold).
With respect to valuation, Cloudflare is currently being traded at a Forward P/E ratio of 186.11. This expresses a premium compared to the average Forward P/E of 40.02 of its industry.
Meanwhile, NET's PEG ratio is currently 3.48. 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 was holding an average PEG ratio of 1.81 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 29, this industry ranks in the top 12% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. 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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Cloudflare (NET) Falls More Steeply Than Broader Market: What Investors Need to Know
Cloudflare (NET - Free Report) closed the latest trading day at $83.26, indicating a -1.68% change from the previous session's end. This change lagged the S&P 500's 0.28% loss on the day. Elsewhere, the Dow lost 0.06%, while the tech-heavy Nasdaq lost 0.56%.
The web security and content delivery company's shares have seen an increase of 9.76% over the last month, surpassing the Computer and Technology sector's gain of 4.68% and the S&P 500's gain of 5.24%.
The investment community will be closely monitoring the performance of Cloudflare in its forthcoming earnings report. On that day, Cloudflare is projected to report earnings of $0.12 per share, which would represent year-over-year growth of 100%. At the same time, our most recent consensus estimate is projecting a revenue of $352.69 million, reflecting a 28.39% rise from the equivalent quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.46 per share and a revenue of $1.29 billion, representing changes of +253.85% and +31.94%, 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Cloudflare is currently a Zacks Rank #3 (Hold).
With respect to valuation, Cloudflare is currently being traded at a Forward P/E ratio of 186.11. This expresses a premium compared to the average Forward P/E of 40.02 of its industry.
Meanwhile, NET's PEG ratio is currently 3.48. 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 was holding an average PEG ratio of 1.81 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 29, this industry ranks in the top 12% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. 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.