Cloudflare (NET) Dips More Than Broader Markets: What You Should Know
Cloudflare (NET) closed at $115.47 in the latest trading session, marking a -1.08% move from the prior day. This change lagged the S&P 500's daily loss of 0.47%.
Prior to today's trading, shares of the web security and content delivery company had gained 10.08% over the past month. This has outpaced the Computer and Technology sector's gain of 3.99% and the S&P 500's gain of 3.38% in that time.
Wall Street will be looking for positivity from NET as it approaches its next earnings report date. This is expected to be August 5, 2021. In that report, analysts expect NET to post earnings of -$0.04 per share. This would mark a year-over-year decline of 33.33%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $146.22 million, up 46.63% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of -$0.11 per share and revenue of $612.16 million, which would represent changes of +8.33% and +42.01%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for NET. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. NET is currently a Zacks Rank #3 (Hold).
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 215, putting it in the bottom 16% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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