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Cloudflare (NET) Flat As Market Gains: What You Should Know

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The latest trading session saw Cloudflare (NET - Free Report) ending at $78.66, denoting no adjustment from its last day's close. The stock trailed the S&P 500, which registered a daily gain of 1.08%. Meanwhile, the Dow experienced a rise of 0.32%, and the technology-dominated Nasdaq saw an increase of 1.58%.

Shares of the web security and content delivery company have appreciated by 0.92% over the course of the past month, outperforming the Computer and Technology sector's loss of 4.77% and the S&P 500's gain of 0.43%.

Investors will be eagerly watching for the performance of Cloudflare in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on August 1, 2024. In that report, analysts expect Cloudflare to post earnings of $0.14 per share. This would mark year-over-year growth of 40%. Simultaneously, our latest consensus estimate expects the revenue to be $394.05 million, showing a 27.74% escalation compared to the year-ago quarter.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.62 per share and a revenue of $1.65 billion, representing changes of +26.53% and +27.28%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Cloudflare. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Cloudflare is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, Cloudflare is holding a Forward P/E ratio of 127.08. This signifies a premium in comparison to the average Forward P/E of 29.66 for its industry.

The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 82, positioning it in the top 33% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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