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

In the latest trading session, Cloudflare (NET) closed at $73.30, marking a -1.27% move from the previous day. This change lagged the S&P 500's 0.53% loss on the day.

Heading into today, shares of the web security and content delivery company had gained 5.42% over the past month, lagging the Computer and Technology sector's gain of 8.44% and the S&P 500's gain of 5.72% in that time.

NET will be looking to display strength as it nears its next earnings release, which is expected to be May 6, 2021. On that day, NET is projected to report earnings of -$0.03 per share, which would represent year-over-year growth of 25%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $131.26 million, up 43.85% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of -$0.09 per share and revenue of $593.79 million, which would represent changes of +25% and +37.75%, respectively, from the prior year.

Any recent changes to analyst estimates for NET should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 5.12% lower. NET is holding a Zacks Rank of #3 (Hold) right now.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 208, which puts it in the bottom 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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