In the latest trading session, Cloudflare (NET) closed at $127.48, marking a -0.4% move from the previous day. This move was narrower than the S&P 500’s daily loss of 0.77%.
Coming into today, shares of the web security and content delivery company had gained 4.71% in the past month. In that same time, the Computer and Technology sector gained 3.13%, while the S&P 500 gained 1.55%.
Investors will be hoping for strength from NET as it approaches its next earnings release. The company is expected to report EPS of -$0.04, down 100% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $165.87 million, up 45.3% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$0.11 per share and revenue of $632.43 million. These totals would mark changes of +8.33% and +46.72%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for NET. 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.
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.
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 0.47% lower. NET currently has a Zacks Rank of #3 (Hold).
The Internet – Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 204, which puts it in the bottom 20% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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