In the latest market close, Cloudflare (NET) reached $115.12, with a -0.78% movement compared to the previous day. This change was narrower than the S&P 500's 1.07% loss on the day. Elsewhere, the Dow saw a downswing of 0.62%, while the tech-heavy Nasdaq depreciated by 1.71%.

Coming into today, shares of the web security and content delivery company had lost 32.22% in the past month. In that same time, the Computer and Technology sector lost 11.12%, while the S&P 500 lost 7.03%.

The investment community will be closely monitoring the performance of Cloudflare in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $0.16, reflecting no change from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $468.78 million, indicating a 23.82% upward movement from the same quarter last year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $0.80 per share and a revenue of $2.09 billion, signifying shifts of +6.67% and +25.32%, respectively, from the last year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Cloudflare. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. At present, Cloudflare boasts a Zacks Rank of #3 (Hold).

In the context of valuation, Cloudflare is at present trading with a Forward P/E ratio of 145.39. This signifies a premium in comparison to the average Forward P/E of 27.87 for its industry.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 79, putting it in the top 32% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

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Cloudflare, Inc. (NET) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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