Yahoo Finance Cloudflare (NET) Stock Sinks As Market Gains: Here's Why
The most recent trading session ended with Cloudflare (NET) standing at $82.37, reflecting a -0.25% shift from the previouse trading day's closing. The stock fell short of the S&P 500, which registered a gain of 1.02% for the day. Meanwhile, the Dow gained 1.09%, and the Nasdaq, a tech-heavy index, added 1.18%.
The web security and content delivery company's shares have seen an increase of 13.7% over the last month, surpassing the Computer and Technology sector's gain of 8.46% and the S&P 500's gain of 4.44%.
The investment community will be paying close attention to the earnings performance of Cloudflare in its upcoming release. The company is slated to reveal its earnings on August 1, 2024. The company's earnings per share (EPS) are projected to be $0.14, reflecting a 40% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $394.05 million, up 27.74% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $0.62 per share and a revenue of $1.65 billion, demonstrating changes of +26.53% and +27.27%, respectively, from the preceding year.
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. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, 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. The Zacks Consensus EPS estimate remained stagnant within the past month. As of now, Cloudflare holds a Zacks Rank of #3 (Hold).
In the context of valuation, Cloudflare is at present trading with a Forward P/E ratio of 133.41. Its industry sports an average Forward P/E of 29.46, so one might conclude that Cloudflare is trading at a premium comparatively.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 90, finds itself in the top 36% echelons 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Cloudflare, Inc. (NET) : Free Stock Analysis Report
