Cloudflare (NET) closed at $112.34 in the latest trading session, marking a -0.65% move from the prior day. This change lagged the S&P 500’s 0.16% gain on the day.
Coming into today, shares of the web security and content delivery company had lost 6.34% in the past month. In that same time, the Computer and Technology sector lost 4.96%, while the S&P 500 lost 3.32%.
Investors will be hoping for strength from NET as it approaches its next earnings release. On that day, NET is projected to report earnings of -$0.04 per share, which would represent a year-over-year decline of 100%. Our most recent consensus estimate is calling for quarterly revenue of $165.87 million, up 45.3% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$0.12 per share and revenue of $632.43 million. These totals would mark changes of 0% and +46.72%, respectively, from last year.
Any recent changes to analyst estimates for NET should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 1.21% lower. NET is currently sporting a Zacks Rank of #4 (Sell).
The Internet – Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 211, putting it in the bottom 17% 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.
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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