In the most recent trading session, Cloudflare (NET) closed at $ 45.87, marking a +0.95% move from the previous day. This move exceeded the S&P 500’s daily loss of 0.07%. At the same time, the Dow added 0.27%, and the tech-heavy Nasdaq gained 0.02%.
Prior to trading today, the web security and content delivery company lost 18.86% shares last month. It caught the Computer and Technology sector losing 7.26% and the S&P 500 losing 7.99% during that period.
Investors will expect strength from Cloudflare as it approaches its next earnings release. In that report, analysts expect Cloudflare to post earnings of -$ 0.01 per share. This will mark year-on-year growth of 50%. Meanwhile, our most recent consensus estimate calls for revenue of $ 227.48 million, up 49.23% from the previous quarter of the year.
Looking at the full year, our Zacks Consensus Estimates suggests that analysts expect revenues of $ 0.03 per share and revenue of $ 956.16 million. These totals will mark changes of +160% and +45.66%, respectively, from last year.
Any recent changes in analyst estimates for Cloudflare should also be kept in mind by investors. These recent changes are likely to reflect the emerging nature of short -term business trends. Consequently, the positive changes in the estimate reflect the analyst’s optimism about the business and profitability of the company.
Our research shows that these changes in estimation are directly related to nearby stock prices. To benefit from this, we developed Zacks Rank, a proprietary model that takes these changes in estimation and provides an actionable rating system.
From #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with the #1 stock returning an average of +25% annually since 1988. Over the past 30 days, our consensus EPS projection has moved 1.74% lower. Cloudflare currently uses Zacks Rank #3 (Hold).
Looking at its appreciation, Cloudflare holds a Forward P/E ratio of 1731.05. This represents a premium compared to its industry average Forward P/E of 42.41.
Investors should also keep in mind that NET has a PEG ratio of 69.24 right now. This popular metric is similar to the known P/E ratio, with the difference that the PEG ratio also takes into account the company’s expected revenue growth rate. Internet – Software stocks are, on average, with a PEG ratio of 2.42 based on yesterday’s closing prices.
The Internet – Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 144, which places it at the lowest 44% of all 250+ industries.
Zacks Industry Rank measures the strength of our industry groups by measuring the average Zacks Rank of individual stocks within groups. Our research shows that the top 50% rated industries outperform the lower half by a factor of 2 to 1.
You can find more information on all of these metrics, and more, at Zacks.com.
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