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Cloudflare NET shares rallied 10.7% in the last trading session to close at $139.98. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 16% gain over the past four weeks.
The stock got a boost from several bullish reports from research firms, including JMP Securities, Truist and Wells Fargo. All the firms raised their target price on the stock while maintaining a buy recommendation.
This web security and content delivery company is expected to post quarterly earnings of $0.18 per share in its upcoming report, which represents a year-over-year change of +20%. Revenues are expected to be $451.8 million, up 24.7% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Cloudflare, the consensus EPS estimate for the quarter has been revised 7% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on NET going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Cloudflare belongs to the Zacks Internet - Software industry. Another stock from the same industry, Asana, Inc. ASAN, closed the last trading session 9.5% higher at $21.98. Over the past month, ASAN has returned -2.7%.
For Asana , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.01. This represents a change of +75% from what the company reported a year ago. Asana currently has a Zacks Rank of #2 (Buy).
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Cloudflare, Inc. (NET) : Free Stock Analysis Report
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