Cloudflare (NET) Rises Higher Than Market: Key Facts

Cloudflare (NET) closed the most recent trading day at $221.03, moving +2.01% from the previous trading session. The stock's change was more than the S&P 500's daily gain of 0.37%. At the same time, the Dow lost 0.14%, and the tech-heavy Nasdaq gained 0.71%. The web security and content delivery company's shares have seen an increase of 1.04% over the last month, not keeping up with the Computer and Technology sector's gain of 8.04% and the S&P 500's gain of 4.26%.Investors will be eagerly watching for the performance of Cloudflare in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.23, indicating a 15% growth compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $544.06 million, indicating a 26.5% increase compared to the same quarter of the previous year. For the full year, the Zacks Consensus Estimates project earnings of $0.84 per share and a revenue of $2.11 billion, demonstrating changes of +12% and +26.66%, respectively, from the preceding year. It's also important for investors to be aware of any recent modifications to analyst estimates for Cloudflare. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits. Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system. The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.99% lower. Right now, Cloudflare possesses a Zacks Rank of #3 (Hold). Looking at its valuation, Cloudflare is holding a Forward P/E ratio of 257. This valuation marks a premium compared to its industry average Forward P/E of 30.03. Investors should also note that NET has a PEG ratio of 10.71 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 2.3. The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 63, this industry ranks in the top 26% of all industries, numbering over 250. The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. To follow NET in the coming trading sessions, be sure to utilize Zacks.com. Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.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