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Cloudflare (NET) closed the most recent trading day at $80.34, moving +0.34% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.54%. Meanwhile, the Dow lost 0.02%, and the Nasdaq, a tech-heavy index, lost 0.12%.
Coming into today, shares of the web security and content delivery company had lost 39.93% in the past month. In that same time, the Computer and Technology sector lost 13.86%, while the S&P 500 lost 7.87%.
Investors will be hoping for strength from Cloudflare as it approaches its next earnings release, which is expected to be February 10, 2022. In that report, analysts expect Cloudflare to post earnings of -$0.01 per share. This would mark year-over-year growth of 50%. Meanwhile, our latest consensus estimate is calling for revenue of $184.74 million, up 46.7% from the prior-year quarter.
Any recent changes to analyst estimates for Cloudflare should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. Within the past 30 days, our consensus EPS projection has moved 4.67% higher. Cloudflare currently has a Zacks Rank of #2 (Buy).
Investors should also note Cloudflare's current valuation metrics, including its Forward P/E ratio of 8007. This represents a premium compared to its industry's average Forward P/E of 43.96.
It is also worth noting that NET currently has a PEG ratio of 320.28. 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. Internet - Software stocks are, on average, holding a PEG ratio of 2.72 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 161, putting it in the bottom 37% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
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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Cloudflare, Inc. (NET) : Free Stock Analysis Report
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