In the latest market close, Cloudflare (NET) reached $89.52, with a +1.8% movement compared to the previous day. The stock's performance was ahead of the S&P 500's daily gain of 0.16%. Meanwhile, the Dow experienced a drop of 0.37%, and the technology-dominated Nasdaq saw an increase of 0.78%.

The web security and content delivery company's shares have seen an increase of 8.72% over the last month, surpassing the Computer and Technology sector's gain of 1.87% and the S&P 500's gain of 1.67%.

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 November 7, 2024. In that report, analysts expect Cloudflare to post earnings of $0.18 per share. This would mark year-over-year growth of 12.5%. Our most recent consensus estimate is calling for quarterly revenue of $423.65 million, up 26.24% from the year-ago period.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $0.71 per share and revenue of $1.66 billion, indicating changes of +44.9% and +27.89%, respectively, compared to the previous year.

Investors might also notice recent changes to analyst estimates for Cloudflare. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. As of now, Cloudflare holds a Zacks Rank of #3 (Hold).

Looking at its valuation, Cloudflare is holding a Forward P/E ratio of 124.64. This expresses a premium compared to the average Forward P/E of 32.31 of its industry.

The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 58, positioning it in the top 24% 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.