Cloudflare (NET) Gains But Lags Market: What You Should Know

Cloudflare (NET) closed the most recent trading day at $40.08, moving +0.88% from the previous trading session. This change lagged the S&P 500's 1.05% gain on the day. At the same time, the Dow added 1.44%, and the tech-heavy Nasdaq gained 0.66%.

Prior to today's trading, shares of the web security and content delivery company had gained 39.4% over the past month. This has outpaced the Computer and Technology sector's gain of 6.34% and the S&P 500's loss of 1.56% in that time.

Investors will be hoping for strength from NET as it approaches its next earnings release, which is expected to be August 6, 2020.

NET's full-year Zacks Consensus Estimates are calling for earnings of -$0.19 per share and revenue of $393.31 million. These results would represent year-over-year changes of +60.42% and +37.03%, respectively.

Any recent changes to analyst estimates for NET should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the past month, the Zacks Consensus EPS estimate has moved 1.22% higher. NET is currently sporting a Zacks Rank of #2 (Buy).

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 46, which puts it in the top 19% 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.

To follow NET in the coming trading sessions, be sure to utilize Zacks.com.

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