Cloudflare (NET) Stock Falls Amid Market Uptick: What Investors Need to Know

Cloudflare (NET) closed the latest trading day at $119.40, indicating a -0.56% change from the previous session's end. This move lagged the S&P 500's daily gain of 0.49%. Meanwhile, the Dow lost 0.2%, and the Nasdaq, a tech-heavy index, added 1.22%.Shares of the web security and content delivery company have depreciated by 30.41% over the course of the past month, underperforming the Computer and Technology sector's loss of 12.07% and the S&P 500's loss of 8.15%.Investors will be eagerly watching for the performance of Cloudflare in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.16, showcasing no movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $468.78 million, reflecting a 23.82% rise from the equivalent quarter last year.For the full year, the Zacks Consensus Estimates are projecting earnings of $0.80 per share and revenue of $2.09 billion, which would represent changes of +6.67% and +25.32%, respectively, from the prior year.Investors should also pay attention to any latest changes in analyst estimates for Cloudflare. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Cloudflare is currently sporting a Zacks Rank of #3 (Hold).In terms of valuation, Cloudflare is currently trading at a Forward P/E ratio of 150.46. This represents a premium compared to its industry's average Forward P/E of 26.7.The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 81, this industry ranks in the top 33% of all industries, numbering over 250.The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want 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