Cloudflare (NET) closed at $98.36 in the latest trading session, marking a +1.32% move from the prior day. The stock exceeded the S&P 500, which registered a loss of 0.23% for the day. On the other hand, the Dow registered a loss of 0.91%, and the technology-centric Nasdaq increased by 0.1%.

The web security and content delivery company's shares have seen a decrease of 23.41% over the last month, not keeping up with the Computer and Technology sector's loss of 16.18% and the S&P 500's loss of 12.13%.

Investors will be eagerly watching for the performance of Cloudflare in its upcoming earnings disclosure. In that report, analysts expect Cloudflare to post earnings of $0.17 per share. This would mark year-over-year growth of 6.25%. At the same time, our most recent consensus estimate is projecting a revenue of $468.71 million, reflecting a 23.8% rise from the equivalent quarter last year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $0.81 per share and revenue of $2.09 billion. These totals would mark changes of +8% and +25.37%, respectively, from last 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. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 4.94% lower. At present, Cloudflare boasts a Zacks Rank of #3 (Hold).

Investors should also note Cloudflare's current valuation metrics, including its Forward P/E ratio of 119.26. This denotes a premium relative to the industry's average Forward P/E of 23.71.

Investors should also note that NET has a PEG ratio of 3.16 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Internet - Software industry currently had an average PEG ratio of 1.77 as of yesterday's close.

The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 82, positioning it in the top 34% of all 250+ industries.

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

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding 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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