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Cloudflare (NET) Stock Declines While Market Improves: Some Information for Investors
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In the latest market close, Cloudflare (NET - Free Report) reached $83.93, with a -0.89% movement compared to the previous day. The stock's change was less than the S&P 500's daily gain of 0.29%. Meanwhile, the Dow experienced a drop of 0.25%, and the technology-dominated Nasdaq saw an increase of 0.43%.
Shares of the web security and content delivery company have appreciated by 0.43% over the course of the past month, underperforming the Computer and Technology sector's gain of 3.67% and the S&P 500's gain of 2.08%.
The investment community will be closely monitoring the performance of Cloudflare in its forthcoming earnings report. The company is scheduled to release its earnings 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. Alongside, our most recent consensus estimate is anticipating revenue of $352.7 million, indicating a 28.39% upward movement from the same quarter last year.
Investors should also take note of any recent adjustments to analyst estimates for Cloudflare. These recent revisions tend to reflect the evolving nature of short-term business trends. 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 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. As of now, Cloudflare holds a Zacks Rank of #3 (Hold).
In terms of valuation, Cloudflare is currently trading at a Forward P/E ratio of 162.53. This indicates a premium in contrast to its industry's Forward P/E of 34.92.
Also, we should mention that NET has a PEG ratio of 3.04. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Software was holding an average PEG ratio of 1.79 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 59, putting it in the top 24% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Cloudflare (NET) Stock Declines While Market Improves: Some Information for Investors
In the latest market close, Cloudflare (NET - Free Report) reached $83.93, with a -0.89% movement compared to the previous day. The stock's change was less than the S&P 500's daily gain of 0.29%. Meanwhile, the Dow experienced a drop of 0.25%, and the technology-dominated Nasdaq saw an increase of 0.43%.
Shares of the web security and content delivery company have appreciated by 0.43% over the course of the past month, underperforming the Computer and Technology sector's gain of 3.67% and the S&P 500's gain of 2.08%.
The investment community will be closely monitoring the performance of Cloudflare in its forthcoming earnings report. The company is scheduled to release its earnings 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. Alongside, our most recent consensus estimate is anticipating revenue of $352.7 million, indicating a 28.39% upward movement from the same quarter last year.
Investors should also take note of any recent adjustments to analyst estimates for Cloudflare. These recent revisions tend to reflect the evolving nature of short-term business trends. 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 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. As of now, Cloudflare holds a Zacks Rank of #3 (Hold).
In terms of valuation, Cloudflare is currently trading at a Forward P/E ratio of 162.53. This indicates a premium in contrast to its industry's Forward P/E of 34.92.
Also, we should mention that NET has a PEG ratio of 3.04. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Software was holding an average PEG ratio of 1.79 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 59, putting it in the top 24% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.