TLDR
- Cloudflare (NET) stock closed at $119.40, down 0.56% despite the S&P 500 gaining 0.49%
- NET shares have declined 30.41% over the past month, significantly underperforming both its sector and the broader market
- The company is expected to report $0.16 EPS with revenue of $468.78 million, representing a 23.82% revenue increase from last year
- Truist Financial analyst Joel Fishbein reiterated a Buy rating on Cloudflare
- Analysts maintain a Moderate Buy consensus with a price target of $161.41, representing a 35.18% upside potential
Cloudflare shares closed at $119.40 in the latest trading session, marking a decrease of 0.56%. This decline came despite the S&P 500 posting a gain of 0.49% on the same day.
The web security and content delivery company moved in the opposite direction of the tech-heavy Nasdaq, which added 1.22%. Meanwhile, the Dow Jones Industrial Average lost 0.2% during the session.
Over the past month, Cloudflare stock has experienced a steep decline of 30.41%. This performance has lagged behind both the Computer and Technology sector, which fell 12.07%, and the broader S&P 500, which dropped 8.15%.
Investors are now turning their attention to Cloudflare’s upcoming earnings report. Analysts forecast the company will report earnings per share (EPS) of $0.16, which would represent no change from the same quarter last year.
Revenue expectations tell a different story. The consensus estimate projects revenue of $468.78 million for the quarter, which would mark a 23.82% increase compared to the equivalent period in the previous year.
Looking at full-year projections, the Zacks Consensus Estimates predict earnings of $0.80 per share. This represents a 6.67% improvement from the prior year.
Revenue for the full year is expected to reach $2.09 billion. This would constitute a 25.32% jump from the previous year’s results.
Analysts continue to evaluate Cloudflare’s prospects. These estimate revisions help indicate changing business trends and can influence stock price performance.
Research shows these estimate changes correlate directly with near-term stock movements. The Zacks Rank system incorporates these estimate changes into a rating system ranging from #1 (Strong Buy) to #5 (Strong Sell).
Zacks maintain a Hold rating
Currently, Cloudflare holds a Zacks Rank of #3, equivalent to a Hold rating. The stock’s valuation metrics show it trading at a Forward P/E ratio of 150.46.
This valuation represents a premium compared to its industry average Forward P/E of 26.7. Cloudflare operates in the Internet – Software industry, which ranks in the top 33% of all industries tracked.
Some analysts remain bullish on the company despite recent price weakness. Truist Financial analyst Joel Fishbein recently reiterated a Buy rating on Cloudflare stock.
Fishbein has demonstrated strong performance in his recommendations, with an average return of 14.9% and a 58.63% success rate on his stock picks. He covers the Technology sector with a focus on cybersecurity and software companies.
Most analysts give stock a Moderate Buy rating
The overall analyst consensus for Cloudflare stands at Moderate Buy. The average price target is $161.41, which suggests a potential upside of 35.18% from current levels.
Needham also maintained a Buy rating on the stock with a target price of $145.00. These positive analyst views come despite recent market challenges for the company.
Cloudflare’s stock has shown high volatility over the past year. The company has traded as high as $177.37 and as low as $66.24 during this period.
Trading volume for Cloudflare averages 3.83 million shares. The current price sits between these extremes as investors weigh the company’s growth potential against market conditions.
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