Cloudflare (NET) Dips More Than Broader Markets: What You Should Know

In the latest trading session, Cloudflare (NET) closed at $40.67, marking a -0.51% move from the previous day. This move lagged the S&P 500's daily loss of 0.48%. Meanwhile, the Dow lost 0.48%, and the Nasdaq, a tech-heavy index, lost 0.29%.

Prior to today's trading, shares of the web security and content delivery company had gained 6.85% over the past month. This has outpaced the Computer and Technology sector's loss of 5.56% and the S&P 500's loss of 4.3% in that time.

Wall Street will be looking for positivity from NET as it approaches its next earnings report date. On that day, NET is projected to report earnings of -$0.05 per share, which would represent year-over-year growth of 68.75%. Meanwhile, our latest consensus estimate is calling for revenue of $103.12 million, up 39.46% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$0.17 per share and revenue of $406.43 million. These totals would mark changes of +64.58% and +41.6%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for NET. 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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. Within the past 30 days, our consensus EPS projection remained stagnant. NET is holding a Zacks Rank of #3 (Hold) right now.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 185, putting it in the bottom 28% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.

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