Cloudflare (NET) stock declines as the market gains: What you need to know

VSloudflare (NET) closed on the last trading day at $ 76.30, or -0.4% from the previous trading session. This move lagged behind the S&P 500’s 0.1% daily gain. At the same time, the Dow Jones rose 0.9% and the tech-rich Nasdaq lost 0.59%.

Prior to today’s stock market, shares of the web security and content delivery company had lost 16.07% in the past month. This lagged behind the 5.38% loss in the IT and tech sector and the 0.71% gain in the S&P 500 during this period.

NET will seek to show its strength as the next release of its results approaches. On that day, NET is expected to report earnings of – $ 0.03 per share, which would represent 25% year-over-year growth. Meanwhile, our latest consensus estimate projects revenue of $ 131.13 million, up 43.7% from the previous year’s quarter.

For the full year, our Zacks consensus estimates project earnings of – $ 0.09 per share and revenue of $ 593.34 million, which would represent changes of + 25% and + 37, 65%, respectively, compared to the previous year.

Any recent changes in analysts’ estimates for NET should also be noted by investors. Recent revisions tend to reflect the latest short-term business trends. With this in mind, we can take positive estimate revisions as a sign of optimism about the company’s business prospects.

Research indicates that these estimate revisions are directly correlated with short-term stock price dynamics. Investors can take advantage of this by using the Zacks Ranking. This model takes into account these changes in estimate and provides a simple and workable scoring system.

The Zacks Rank system, which ranges from # 1 (strong buy) to # 5 (strong sell), has an impressive externally audited outperformance history, with # 1 stocks generating an average annual return of + 25% since 1988. Over last month, the Zacks Consensus EPS estimate has fallen 14.39%. NET currently sports a Zacks rank of # 3 (Hold).

The Internet – Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 175, which places it in the lowest 32% of the 250+ industries.

The Zacks Industry Rank measures the strength of our industry groups by measuring the average Zacks Rank of individual stocks within groups. Our research shows that the top 50% of industries top the bottom half by a factor of 2 to 1.

Make sure to use Zacks. Com to track all of these stock market metrics, and more, over future trading sessions.

Want the latest recommendations from Zacks Investment Research? Today you can download 7 best stocks for the next 30 days. Click to get this free report

Cloudflare, Inc. (NET): Get a Free Report

To read this article on Zacks.com, click here.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Ann J. Cox