Cloudflare (NET) Dips More Than Broader Markets: What You Should Know
In the latest trading session, Cloudflare (NET) closed at $46.67, marking a -1.99% move from the previous day. This change lagged the S&P 500's daily loss of 0.07%. At the same time, the Dow added 0.31%, and the tech-heavy Nasdaq lost 3.22%.
Prior to today's trading, shares of the web security and content delivery company had gained 8.77% over the past month. This has lagged the Computer and Technology sector's gain of 11.67% and outpaced the S&P 500's gain of 4.64% in that time.
Cloudflare will be looking to display strength as it nears its next earnings release, which is expected to be February 9, 2023. Our most recent consensus estimate is calling for quarterly revenue of $274.24 million, up 41.65% from the year-ago period.
Investors might also notice recent changes to analyst estimates for Cloudflare. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 remained stagnant. Cloudflare is currently a Zacks Rank #3 (Hold).
Digging into valuation, Cloudflare currently has a Forward P/E ratio of 321.76. This represents a premium compared to its industry's average Forward P/E of 42.33.
It is also worth noting that NET currently has a PEG ratio of 12.87. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Software industry currently had an average PEG ratio of 2.24 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 55, putting it in the top 22% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Cloudflare, Inc. (NET) : Free Stock Analysis Report
