Cloudflare (NET) closed the latest trading day at $107.12, indicating a +0.82% change from the previous session's end. The stock outpaced the S&P 500's daily gain of 0.79%. Elsewhere, the Dow saw an upswing of 0.78%, while the tech-heavy Nasdaq appreciated by 0.64%.

Shares of the web security and content delivery company witnessed a loss of 8.52% over the previous month, trailing the performance of the Computer and Technology sector with its loss of 4.81% and the S&P 500's loss of 3.56%.

The investment community will be closely monitoring the performance of Cloudflare in its forthcoming earnings report. The company is expected to report EPS of $0.17, up 6.25% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $468.71 million, showing a 23.8% escalation compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates project earnings of $0.81 per share and a revenue of $2.09 billion, demonstrating changes of +8% and +25.37%, respectively, from the preceding year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Cloudflare. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 4.94% lower. Cloudflare currently has a Zacks Rank of #3 (Hold).

From a valuation perspective, Cloudflare is currently exchanging hands at a Forward P/E ratio of 130.53. Its industry sports an average Forward P/E of 25.02, so one might conclude that Cloudflare is trading at a premium comparatively.

Investors should also note that NET has a PEG ratio of 3.46 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The average PEG ratio for the Internet - Software industry stood at 1.85 at the close of the market yesterday.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 91, putting it in the top 37% of all 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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) : Free Stock Analysis Report

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

Zacks Investment Research