The latest trading session saw Cloudflare (NET) ending at $79.34, denoting a +1.57% adjustment from its last day's close. The stock outpaced the S&P 500's daily gain of 0.01%. On the other hand, the Dow registered a gain of 0.09%, and the technology-centric Nasdaq increased by 0.08%.

The the stock of web security and content delivery company has by 0% in the past month, lagging the Computer and Technology sector's gain of 1.03% and the S&P 500's gain of 1.21%.

The investment community will be closely monitoring the performance of Cloudflare in its forthcoming earnings report. 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.

Investors should also take note of any recent adjustments to analyst estimates for Cloudflare. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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 past month, the Zacks Consensus EPS estimate has shifted 6.03% downward. Currently, Cloudflare is carrying a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Cloudflare has a Forward P/E ratio of 110.71 right now. For comparison, its industry has an average Forward P/E of 30.46, which means Cloudflare is trading at a premium to the group.

The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 73, this industry ranks in the top 29% of all industries, numbering over 250.

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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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