In the latest market close, Cloudflare (NET) reached $82.36, with a -1.26% movement compared to the previous day. This change lagged the S&P 500's daily gain of 0.4%. Elsewhere, the Dow gained 0.62%, while the tech-heavy Nasdaq added 0.6%.

Heading into today, shares of the web security and content delivery company had gained 4.46% over the past month, outpacing the Computer and Technology sector's gain of 0.91% and the S&P 500's gain of 1.71% in that time.

The investment community will be closely monitoring the performance of Cloudflare in its forthcoming earnings report. On that day, Cloudflare is projected to report earnings of $0.18 per share, which would represent year-over-year growth of 12.5%. Meanwhile, the latest consensus estimate predicts the revenue to be $423.65 million, indicating a 26.24% increase compared to the same quarter of the previous year.

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 should also note any recent changes to analyst estimates for Cloudflare. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 shifted 6.03% downward. As of now, Cloudflare holds a Zacks Rank of #3 (Hold).

From a valuation perspective, Cloudflare is currently exchanging hands at a Forward P/E ratio of 118.22. This denotes a premium relative to the industry's average Forward P/E of 30.41.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 78, putting it in the top 31% of all 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.

You can find more information on all of these metrics, and much more, on Zacks.com.

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