Here's Why Cloudflare (NET) Fell More Than Broader Market

The latest trading session saw Cloudflare (NET) ending at $107.68, denoting a -1.24% adjustment from its last day's close. The stock trailed the S&P 500, which registered a daily loss of 0.43%. Elsewhere, the Dow lost 0.07%, while the tech-heavy Nasdaq lost 0.9%.The the stock of web security and content delivery company has risen by 3.79% in the past month, leading the Computer and Technology sector's gain of 2.86% and the S&P 500's loss of 1.98%.Analysts and investors alike will be keeping a close eye on the performance of Cloudflare in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.18, signifying a 20% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $451.8 million, up 24.65% from the year-ago period.For the annual period, the Zacks Consensus Estimates anticipate earnings of $0.74 per share and a revenue of $1.66 billion, signifying shifts of +51.02% and +28.12%, respectively, from the last year.Investors should also take note of any recent adjustments to analyst estimates for Cloudflare. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 6.19% higher. Cloudflare presently features a Zacks Rank of #3 (Hold).In the context of valuation, Cloudflare is at present trading with a Forward P/E ratio of 147.34. This valuation marks a premium compared to its industry's average Forward P/E of 32.53.The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 27, which puts it in the top 11% of all 250+ industries.The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.You can find more information on all of these metrics, and much more, on Zacks.com.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 228 positions with double- and triple-digit gains in 2023 alone.See Stocks Now >>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 ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks