Cloudflare (NET) Falls More Steeply Than Broader Market: What Investors Need to Know

In the latest trading session, Cloudflare (NET) closed at $202.44, marking a -2.65% move from the previous day. This change lagged the S&P 500's daily loss of 1.07%. Elsewhere, the Dow lost 0.51%, while the tech-heavy Nasdaq lost 1.69%. Coming into today, shares of the web security and content delivery company had lost 2.62% in the past month. In that same time, the Computer and Technology sector gained 1.6%, while the S&P 500 gained 0.94%. 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 $0.27 per share, which would represent year-over-year growth of 42.11%. In the meantime, our current consensus estimate forecasts the revenue to be $589.23 million, indicating a 28.11% growth compared to the corresponding quarter of the prior year. In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $0.91 per share and a revenue of $2.14 billion, indicating changes of +21.33% and +28.33%, respectively, from the former year. Investors should also take note of any recent adjustments to analyst estimates for Cloudflare. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 2.07% higher within the past month. Cloudflare presently features a Zacks Rank of #2 (Buy). Valuation is also important, so investors should note that Cloudflare has a Forward P/E ratio of 229.66 right now. This valuation marks a premium compared to its industry average Forward P/E of 29.42. Also, we should mention that NET has a PEG ratio of 8.56. 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. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 1.98. The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 57, this industry ranks in the top 24% 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. Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions. Research Chief Names "Single Best Pick to Double"From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Cloudflare, Inc. (NET): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks