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Cloudflare (NET) Stock Sinks As Market Gains: Here's Why
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The most recent trading session ended with Cloudflare (NET - Free Report) standing at $80.97, reflecting a -0.81% shift from the previouse trading day's closing. This change lagged the S&P 500's daily gain of 0.57%. Elsewhere, the Dow saw an upswing of 0.46%, while the tech-heavy Nasdaq appreciated by 0.75%.
Shares of the web security and content delivery company have appreciated by 4.4% over the course of the past month, outperforming the Computer and Technology sector's gain of 1.51% and the S&P 500's gain of 3.4%.
The upcoming earnings release of Cloudflare will be of great interest to investors. The company's earnings report is expected on February 8, 2024. The company is predicted to post an EPS of $0.12, indicating a 100% growth compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $352.69 million, indicating a 28.39% increase compared to the same quarter of the previous year.
It is also important to note the recent changes to analyst estimates for Cloudflare. Such recent modifications usually signify the changing landscape of near-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 suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Cloudflare is currently a Zacks Rank #3 (Hold).
In terms of valuation, Cloudflare is currently trading at a Forward P/E ratio of 156.68. This valuation marks a premium compared to its industry's average Forward P/E of 34.02.
We can also see that NET currently has a PEG ratio of 2.93. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 1.65.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 29, finds itself in the top 12% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Cloudflare (NET) Stock Sinks As Market Gains: Here's Why
The most recent trading session ended with Cloudflare (NET - Free Report) standing at $80.97, reflecting a -0.81% shift from the previouse trading day's closing. This change lagged the S&P 500's daily gain of 0.57%. Elsewhere, the Dow saw an upswing of 0.46%, while the tech-heavy Nasdaq appreciated by 0.75%.
Shares of the web security and content delivery company have appreciated by 4.4% over the course of the past month, outperforming the Computer and Technology sector's gain of 1.51% and the S&P 500's gain of 3.4%.
The upcoming earnings release of Cloudflare will be of great interest to investors. The company's earnings report is expected on February 8, 2024. The company is predicted to post an EPS of $0.12, indicating a 100% growth compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $352.69 million, indicating a 28.39% increase compared to the same quarter of the previous year.
It is also important to note the recent changes to analyst estimates for Cloudflare. Such recent modifications usually signify the changing landscape of near-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 suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Cloudflare is currently a Zacks Rank #3 (Hold).
In terms of valuation, Cloudflare is currently trading at a Forward P/E ratio of 156.68. This valuation marks a premium compared to its industry's average Forward P/E of 34.02.
We can also see that NET currently has a PEG ratio of 2.93. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 1.65.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 29, finds itself in the top 12% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.