In the latest trading session, Cloudflare (NET) closed at $121, marking a +1.79% move from the previous day. The stock exceeded the S&P 500, which registered a gain of 0.74% for the day. Elsewhere, the Dow saw an upswing of 0.05%, while the tech-heavy Nasdaq appreciated by 1.26%.

The web security and content delivery company's stock has climbed by 0.25% in the past month, exceeding the Computer and Technology sector's loss of 6.23% and the S&P 500's loss of 4.77%.

Analysts and investors alike will be keeping a close eye on the performance of Cloudflare in its upcoming earnings disclosure. The company's earnings report is set to go public on May 8, 2025. The company is expected to report EPS of $0.16, unchanged from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $468.74 million, up 23.81% from the prior-year quarter.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.79 per share and a revenue of $2.09 billion, representing changes of +5.33% and +25.29%, respectively, from the prior year.

Any recent changes to analyst estimates for Cloudflare should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. The Zacks Consensus EPS estimate has moved 2.35% lower within the past month. Cloudflare is holding a Zacks Rank of #3 (Hold) right now.

From a valuation perspective, Cloudflare is currently exchanging hands at a Forward P/E ratio of 149.71. This expresses a premium compared to the average Forward P/E of 25.94 of its industry.

Investors should also note that NET has a PEG ratio of 3.97 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Internet - Software was holding an average PEG ratio of 2.13 at yesterday's closing price.

The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 87, placing it within the top 36% of over 250 industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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Cloudflare, Inc. (NET) : Free Stock Analysis Report

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

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