Cloudflare (NET) ended the recent trading session at $119.22, demonstrating a +1.09% swing from the preceding day's closing price. The stock exceeded the S&P 500, which registered a gain of 0.08% for the day. Meanwhile, the Dow gained 0.08%, and the Nasdaq, a tech-heavy index, added 0.52%.

The web security and content delivery company's stock has dropped by 24.58% in the past month, falling short of the Computer and Technology sector's loss of 12.04% and the S&P 500's loss of 7.33%.

Investors will be eagerly watching for the performance of Cloudflare in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.16, signifying steadiness compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $468.71 million, up 23.8% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of $0.80 per share and a revenue of $2.09 billion, demonstrating changes of +6.67% and +25.37%, respectively, from the preceding year.

Investors should also take note of any recent adjustments to analyst estimates for Cloudflare. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.62% increase. As of now, Cloudflare holds a Zacks Rank of #4 (Sell).

Valuation is also important, so investors should note that Cloudflare has a Forward P/E ratio of 148.12 right now. This signifies a premium in comparison to the average Forward P/E of 27.92 for its industry.

The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 81, positioning it in the top 33% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

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