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.

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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