Why the Market Dipped But Cloudflare (NET) Gained Today

The latest trading session saw Cloudflare (NET) ending at $114.82, denoting a +0.3% adjustment from its last day's close. The stock outpaced the S&P 500's daily loss of 0.21%. On the other hand, the Dow registered a loss of 0.16%, and the technology-centric Nasdaq decreased by 0.89%.The the stock of web security and content delivery company has risen by 4.93% in the past month, leading the Computer and Technology sector's loss of 2.15% and the S&P 500's loss of 1.56%.The upcoming earnings release of Cloudflare will be of great interest to investors. The company's earnings report is expected on February 6, 2025. The company is expected to report EPS of $0.18, up 20% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $451.8 million, showing a 24.65% escalation compared to the year-ago quarter.Investors should also note any recent changes to analyst estimates for Cloudflare. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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.Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 17.17% higher. At present, Cloudflare boasts a Zacks Rank of #3 (Hold).In terms of valuation, Cloudflare is currently trading at a Forward P/E ratio of 136.45. For comparison, its industry has an average Forward P/E of 28.24, which means Cloudflare is trading at a premium to the group.The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 33, this industry ranks in the top 14% of all industries, numbering over 250.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.Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>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