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The most recent trading session ended with Cloudflare (NET) standing at $112.69, reflecting a -1.94% shift from the previouse trading day's closing. The stock fell short of the S&P 500, which registered a gain of 0.55% for the day. Meanwhile, the Dow gained 1.01%, and the Nasdaq, a tech-heavy index, lost 0.14%.
Shares of the web security and content delivery company have depreciated by 20.91% over the course of the past month, underperforming the Computer and Technology sector's loss of 8.88% and the S&P 500's loss of 6.22%.
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 $0.17 per share, which would represent year-over-year growth of 6.25%. Our most recent consensus estimate is calling for quarterly revenue of $468.71 million, up 23.8% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $0.81 per share and a revenue of $2.09 billion, indicating changes of +8% and +25.37%, respectively, from the former year.
Any recent changes to analyst estimates for Cloudflare should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 4.94% lower within the past month. Currently, Cloudflare is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, Cloudflare is currently trading at a Forward P/E ratio of 141.18. Its industry sports an average Forward P/E of 26.45, so one might conclude that Cloudflare is trading at a premium comparatively.
We can additionally observe that NET currently boasts a PEG ratio of 3.74. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Internet - Software industry currently had an average PEG ratio of 2.01 as of yesterday's close.