Cloudflare (NET) closed the latest trading day at $87.64, indicating a -0.93% change from the previous session's end. This change lagged the S&P 500's 0.92% loss on the day. Meanwhile, the Dow experienced a drop of 0.96%, and the technology-dominated Nasdaq saw a decrease of 1.6%.

The web security and content delivery company's stock has climbed by 3.46% in the past month, falling short of the Computer and Technology sector's gain of 3.64% and outpacing the S&P 500's gain of 2.68%.

Market participants will be closely following the financial results of Cloudflare in its upcoming release. The company plans to announce its earnings on November 7, 2024. The company is expected to report EPS of $0.18, up 12.5% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $423.65 million, indicating a 26.24% upward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of $0.71 per share and a revenue of $1.66 billion, demonstrating changes of +44.9% and +27.89%, respectively, from the preceding year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Cloudflare. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Cloudflare presently features a Zacks Rank of #3 (Hold).

Looking at valuation, Cloudflare is presently trading at a Forward P/E ratio of 125.38. This indicates a premium in contrast to its industry's Forward P/E of 32.38.

The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 63, placing it within the top 25% of over 250 industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.