Cloudflare (NET) Outpaces Stock Market Gains: What You Should Know

·2 min read

Cloudflare (NET) closed the most recent trading day at $167.69, moving +1.46% from the previous trading session. This change outpaced the S&P 500's 0.75% gain on the day.

Coming into today, shares of the web security and content delivery company had gained 23.82% in the past month. In that same time, the Computer and Technology sector lost 2.38%, while the S&P 500 lost 0.05%.

Investors will be hoping for strength from NET as it approaches its next earnings release, which is expected to be November 4, 2021. On that day, NET is projected to report earnings of -$0.04 per share, which would represent a year-over-year decline of 100%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales 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.

Investors should also note any recent changes to analyst estimates for NET. These recent revisions tend to reflect the evolving nature of short-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. The Zacks Consensus EPS estimate has moved 0.63% lower within the past month. NET is currently a Zacks Rank #4 (Sell).

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 175, which puts it in the bottom 32% 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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