Cloudflare (NET) ended the recent trading session at $90.74, demonstrating a -0.07% swing from the preceding day's closing price. This change was narrower than the S&P 500's 0.18% loss on the day. Meanwhile, the Dow lost 0.8%, and the Nasdaq, a tech-heavy index, added 0.27%.

Prior to today's trading, shares of the web security and content delivery company had gained 10.13% over the past month. This has outpaced the Computer and Technology sector's gain of 6.6% and the S&P 500's gain of 4.46% in that time.

The investment community will be closely monitoring the performance of Cloudflare in its forthcoming earnings report. The company is scheduled to release its earnings on November 7, 2024. It is anticipated that the company will report an EPS of $0.18, marking a 12.5% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $423.65 million, up 26.24% from the year-ago period.

NET's full-year Zacks Consensus Estimates are calling for earnings of $0.71 per share and revenue of $1.66 billion. These results would represent year-over-year changes of +44.9% and +27.89%, respectively.

It is also important to note the recent changes to analyst estimates for Cloudflare. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Currently, Cloudflare is carrying a Zacks Rank of #3 (Hold).

Investors should also note Cloudflare's current valuation metrics, including its Forward P/E ratio of 128.69. This signifies a premium in comparison to the average Forward P/E of 32.33 for its industry.

The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 64, this industry ranks in the top 26% of all industries, numbering over 250.