Cloudflare (NET) Stock Sinks As Market Gains: What You Should Know
Cloudflare (NET) closed at $113.97 in the latest trading session, marking a -0.15% move from the prior day.
In the latest trading session, Cloudflare (NET) closed at $113.97, marking a -0.15% move from the previous day. This change lagged the S&P 500's 0.28% gain on the day. Elsewhere, the Dow gained 0.11%, while the tech-heavy Nasdaq added 0.14%.
Prior to today's trading, shares of the web security and content delivery company had lost 13.53% over the past month. This has lagged the Computer and Technology sector's loss of 4.59% and the S&P 500's gain of 0.12% in that time.
Wall Street will be looking for positivity from Cloudflare as it approaches its next earnings report date. This is expected to be February 10, 2022. On that day, Cloudflare is projected to report earnings of -$0.01 per share, which would represent year-over-year growth of 50%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $184.65 million, up 46.63% from the year-ago period.
Investors might also notice recent changes to analyst estimates for Cloudflare. These recent revisions tend to reflect the evolving nature of short-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. 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.
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 remained stagnant. Cloudflare is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Cloudflare is currently trading at a Forward P/E ratio of 22828. Its industry sports an average Forward P/E of 57.18, so we one might conclude that Cloudflare is trading at a premium comparatively.
It is also worth noting that NET currently has a PEG ratio of 913.12. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Software was holding an average PEG ratio of 3.02 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 182, which puts it in the bottom 29% 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.
To follow NET in the coming trading sessions, be sure to utilize Zacks.com.
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