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Cloudflare (NET) Stock Sinks As Market Gains: Here's Why
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In the latest trading session, Cloudflare (NET - Free Report) closed at $181.92, marking a -5.98% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.28%. At the same time, the Dow added 0.43%, and the tech-heavy Nasdaq gained 0.09%.
The web security and content delivery company's shares have seen an increase of 7.67% over the last month, surpassing the Computer and Technology sector's gain of 6.2% and the S&P 500's gain of 4.37%.
Market participants will be closely following the financial results of Cloudflare in its upcoming release. The company plans to announce its earnings on July 31, 2025. The company is forecasted to report an EPS of $0.18, showcasing a 10% downward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $500.72 million, reflecting a 24.87% rise from the equivalent quarter last year.
NET's full-year Zacks Consensus Estimates are calling for earnings of $0.79 per share and revenue of $2.09 billion. These results would represent year-over-year changes of +5.33% and +25.38%, respectively.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Cloudflare. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Cloudflare presently features a Zacks Rank of #5 (Strong Sell).
Looking at valuation, Cloudflare is presently trading at a Forward P/E ratio of 244.21. Its industry sports an average Forward P/E of 29.03, so one might conclude that Cloudflare is trading at a premium comparatively.
Meanwhile, NET's PEG ratio is currently 9.94. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. 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. With its current Zacks Industry Rank of 62, this industry ranks in the top 26% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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 (NET) Stock Sinks As Market Gains: Here's Why
In the latest trading session, Cloudflare (NET - Free Report) closed at $181.92, marking a -5.98% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.28%. At the same time, the Dow added 0.43%, and the tech-heavy Nasdaq gained 0.09%.
The web security and content delivery company's shares have seen an increase of 7.67% over the last month, surpassing the Computer and Technology sector's gain of 6.2% and the S&P 500's gain of 4.37%.
Market participants will be closely following the financial results of Cloudflare in its upcoming release. The company plans to announce its earnings on July 31, 2025. The company is forecasted to report an EPS of $0.18, showcasing a 10% downward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $500.72 million, reflecting a 24.87% rise from the equivalent quarter last year.
NET's full-year Zacks Consensus Estimates are calling for earnings of $0.79 per share and revenue of $2.09 billion. These results would represent year-over-year changes of +5.33% and +25.38%, respectively.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Cloudflare. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Cloudflare presently features a Zacks Rank of #5 (Strong Sell).
Looking at valuation, Cloudflare is presently trading at a Forward P/E ratio of 244.21. Its industry sports an average Forward P/E of 29.03, so one might conclude that Cloudflare is trading at a premium comparatively.
Meanwhile, NET's PEG ratio is currently 9.94. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. 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. With its current Zacks Industry Rank of 62, this industry ranks in the top 26% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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.